Skip to main content
Top
Published in: Asian Journal of Business Ethics 2/2021

10-11-2021

Supply Chain 4.0: the impact of supply chain digitalization and integration on firm performance

Authors: Kam Pui Liu, Weisheng Chiu

Published in: Asian Journal of Business Ethics | Issue 2/2021

Log in

Activate our intelligent search to find suitable subject content or patents.

search-config
loading …

Abstract

The purpose of this study is to propose a research model to investigate the relationships between supply chain digitalization, supply chain integration, and firm performance. In particular, the mediating effect of supply chain integration and the moderating effect of supply chain digitalization in the research model are examined. An online survey is administered to Chinese employees (N = 264) working in the supply chain industry. Data are analyzed by the partial least squares structural equation modeling (PLS-SEM) using the SmartPLS 3.0. The findings of this study reveal that both digitalization and supply chain integration have a positive influence on firm performance. Moreover, supply chain integration partially mediates the relationship between supply chain digitalization and firm performance. Meanwhile, supply chain digitalization positively moderates the relationship between supply chain integration and firm performance. These findings address the research gap in the extant literature and provide practical implications in ethical supply chain management. In particular, this study reveals that supply chain digitalization can drive a higher level of ethical supply chain in the perspective of supply chain visibility and efficiency in operations.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

Literature
go back to reference Akyuz, G. A., & Rehan, M. (2009). Requirements for forming an ‘e-supply chain.’ International Journal of Production Research, 47(12), 3265.CrossRef Akyuz, G. A., & Rehan, M. (2009). Requirements for forming an ‘e-supply chain.’ International Journal of Production Research, 47(12), 3265.CrossRef
go back to reference Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173.CrossRef Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173.CrossRef
go back to reference Björkdahl, J., & Holmén, M. (2019). Exploiting the control revolution by means of digitalization: Value creation, value capture, and downstream movements. Industrial and Corporate Change, 28(3), 423–436.CrossRef Björkdahl, J., & Holmén, M. (2019). Exploiting the control revolution by means of digitalization: Value creation, value capture, and downstream movements. Industrial and Corporate Change, 28(3), 423–436.CrossRef
go back to reference Bowersox, D. J., Closs, D. J., & Drayer, R. W. (2005). The digital transformation: Technology and beyond. Supply Chain Management Review, 9(1), 22–29. Bowersox, D. J., Closs, D. J., & Drayer, R. W. (2005). The digital transformation: Technology and beyond. Supply Chain Management Review, 9(1), 22–29.
go back to reference Cespedes, F. V. (1996). Beyond teamwork: How the wise can synchronize. Marketing Management, 5(1), 24. Cespedes, F. V. (1996). Beyond teamwork: How the wise can synchronize. Marketing Management, 5(1), 24.
go back to reference Chan, Y. E., Huff, S. L., Barclay, D. W., & Copeland, D. G. (1997). Business strategic orientation, information systems strategic orientation, and strategic alignment. Information Systems Research, 8(2), 125–150.CrossRef Chan, Y. E., Huff, S. L., Barclay, D. W., & Copeland, D. G. (1997). Business strategic orientation, information systems strategic orientation, and strategic alignment. Information Systems Research, 8(2), 125–150.CrossRef
go back to reference Chong, A.Y.-L., & Zhou, L. (2014). Demand chain management: Relationships between external antecedents, web-based integration and service innovation performance. International Journal of Production Economics, 154(August), 48–58.CrossRef Chong, A.Y.-L., & Zhou, L. (2014). Demand chain management: Relationships between external antecedents, web-based integration and service innovation performance. International Journal of Production Economics, 154(August), 48–58.CrossRef
go back to reference Craighead, C. W., Ketchen, D. J., Dunn, K. S., & Hult, G. T. M. (2011). Addressing common method variance: Guidelines for survey research on information technology, operations, and supply chain management. IEEE Transactions on Engineering Management, 58(3), 578–588.CrossRef Craighead, C. W., Ketchen, D. J., Dunn, K. S., & Hult, G. T. M. (2011). Addressing common method variance: Guidelines for survey research on information technology, operations, and supply chain management. IEEE Transactions on Engineering Management, 58(3), 578–588.CrossRef
go back to reference Erol, S., Schumacher, A., & Sihn, W. (2016). Strategic guidance towards Industry 4.0 – A three-stage process model. International Conference on Competitive Manufacturing. Erol, S., Schumacher, A., & Sihn, W. (2016). Strategic guidance towards Industry 4.0 – A three-stage process model. International Conference on Competitive Manufacturing.
go back to reference Errassafi, M., Abbar, H., & Benabbou, Z. (2019). The mediating effect of internal integration on the relationship between supply chain integration and operational performance: Evidence from Moroccan manufacturing companies. Journal of Industrial Engineering and Management, 12(2), 254–273. https://doi.org/10.3926/jiem.2794CrossRef Errassafi, M., Abbar, H., & Benabbou, Z. (2019). The mediating effect of internal integration on the relationship between supply chain integration and operational performance: Evidence from Moroccan manufacturing companies. Journal of Industrial Engineering and Management, 12(2), 254–273. https://​doi.​org/​10.​3926/​jiem.​2794CrossRef
go back to reference 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.CrossRef 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.CrossRef
go back to reference Frohlich, M. T., & Westbrook, R. (2001). Arcs of integration: An international study of supply chain strategies. Journal of Operations Management, 19(2), 185–200.CrossRef Frohlich, M. T., & Westbrook, R. (2001). Arcs of integration: An international study of supply chain strategies. Journal of Operations Management, 19(2), 185–200.CrossRef
go back to reference Gautr, R. (2020, 2020 Feb 29). Digitization in supply chain: Digital technologies in chemical industries: Supply chain. Chemical Industry Digest. Gautr, R. (2020, 2020 Feb 29). Digitization in supply chain: Digital technologies in chemical industries: Supply chain. Chemical Industry Digest.
go back to reference Germain, R., & Iyer, K. (2006). The interaction of internal and downstream integration and its association with performance. Journal of Business Logistics, 27(2), 29–52.CrossRef Germain, R., & Iyer, K. (2006). The interaction of internal and downstream integration and its association with performance. Journal of Business Logistics, 27(2), 29–52.CrossRef
go back to reference Gorbach, G. (2017). The great digitization of industry. Supply Chain Managment Review, September/October, 24–29. Gorbach, G. (2017). The great digitization of industry. Supply Chain Managment Review, September/October, 24–29.
go back to reference Gupta, M., & Kohli, A. (2006). Enterprise resource planning systems and its implications for operations function. Technovation, 26(5,6), 687–696. Gupta, M., & Kohli, A. (2006). Enterprise resource planning systems and its implications for operations function. Technovation, 26(5,6), 687–696.
go back to reference Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis (7th ed.). Prentice-Hall. Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis (7th ed.). Prentice-Hall.
go back to reference Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM) (2 ed.). Sage Publications. Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM) (2 ed.). Sage Publications.
go back to reference Jayaram, J., & Xu, K. (2013). The relative influence of external versus internal integration on plant performance in China. International Journal of Production Economics, 146(1), 59.CrossRef Jayaram, J., & Xu, K. (2013). The relative influence of external versus internal integration on plant performance in China. International Journal of Production Economics, 146(1), 59.CrossRef
go back to reference Khajavi, S. H., Partanen, J., & Holmström, J. (2014). Additive manufacturing in the spare parts supply chain. Computers in Industry, 65(1), 50.CrossRef Khajavi, S. H., Partanen, J., & Holmström, J. (2014). Additive manufacturing in the spare parts supply chain. Computers in Industry, 65(1), 50.CrossRef
go back to reference Kock, N. (2017). Common method bias: A full collinearity assessment method for PLS-SEM. In H. Latan & R. Noonan (Eds.), Partial least squares path modeling: Basic concepts, methodological issues and applications (pp. 245–257). Springer International Publishing. https://doi.org/10.1007/978-3-319-64069-3_11 Kock, N. (2017). Common method bias: A full collinearity assessment method for PLS-SEM. In H. Latan & R. Noonan (Eds.), Partial least squares path modeling: Basic concepts, methodological issues and applications (pp. 245–257). Springer International Publishing. https://​doi.​org/​10.​1007/​978-3-319-64069-3_​11
go back to reference Legner, C., Eymann, T., Hess, T., Matt, C., Böhmann, T., Drews, P., Mädche, A., Urbach, N., & Ahlemann, F. (2017). Digitalization: Opportunity and challenge for the business and information systems engineering community. Business & Information Systems Engineering, 59(4), 301–308. https://doi.org/10.1007/s12599-017-0484-2CrossRef Legner, C., Eymann, T., Hess, T., Matt, C., Böhmann, T., Drews, P., Mädche, A., Urbach, N., & Ahlemann, F. (2017). Digitalization: Opportunity and challenge for the business and information systems engineering community. Business & Information Systems Engineering, 59(4), 301–308. https://​doi.​org/​10.​1007/​s12599-017-0484-2CrossRef
go back to reference Leuschner, R., Rogers, D. S., & Charvet, F. F. (2013). A meta-analysis of supply chain integration and firm performance. Journal of Supply Chain Management, 49(2), 34–57.CrossRef Leuschner, R., Rogers, D. S., & Charvet, F. F. (2013). A meta-analysis of supply chain integration and firm performance. Journal of Supply Chain Management, 49(2), 34–57.CrossRef
go back to reference Lyall, A., Mercier, P., & Gstettner, S. (2018). The death of supply chain management [Article]. Harvard Business Review Digital Articles, 2–4. Lyall, A., Mercier, P., & Gstettner, S. (2018). The death of supply chain management [Article]. Harvard Business Review Digital Articles, 2–4.
go back to reference Magretta, J. (1998). The power of virtual integration: An interview with Dell Computer’s Michael Dell. Harvard Business Review, 76(2), 72–84. Magretta, J. (1998). The power of virtual integration: An interview with Dell Computer’s Michael Dell. Harvard Business Review, 76(2), 72–84.
go back to reference Manaadiar, H. (2020). How to achieve cost saving through digitalization in shipping. Manaadiar, H. (2020). How to achieve cost saving through digitalization in shipping.
go back to reference Mukhopadhyay, T., & Kekre, S. (2002). Strategic and operational benefits of electronic integration in B2B procurement processes. Management Science, 48(10), 1301–1313.CrossRef Mukhopadhyay, T., & Kekre, S. (2002). Strategic and operational benefits of electronic integration in B2B procurement processes. Management Science, 48(10), 1301–1313.CrossRef
go back to reference Queiroz Maciel, M., Pereira Susana Carla, F., Telles, R., & Machado Marcio, C. (2019). Industry 4.0 and digital supply chain capabilities: A framework for understanding digitalisation challenges and opportunities. Benchmarking: An International Journal, ahead-of-print. https://doi.org/10.1108/bij-12-2018-0435 Queiroz Maciel, M., Pereira Susana Carla, F., Telles, R., & Machado Marcio, C. (2019). Industry 4.0 and digital supply chain capabilities: A framework for understanding digitalisation challenges and opportunities. Benchmarking: An International Journal, ahead-of-print. https://​doi.​org/​10.​1108/​bij-12-2018-0435
go back to reference Rai, A., Patnayakuni, R., & Nainika, S. (2006). Firm performance impacts of digitally enabled supply chain integration capabilities. MIS Quarterly, 30(2), 225–246.CrossRef Rai, A., Patnayakuni, R., & Nainika, S. (2006). Firm performance impacts of digitally enabled supply chain integration capabilities. MIS Quarterly, 30(2), 225–246.CrossRef
go back to reference Ramayah, T., Hwa, C., Chuah, F., Ting, H., & Memon, M. (2018). PLS-SEM using SmartPLS 3.0: Chapter 13: Assessment of moderation analysis. In T. Ramayah, J. Cheah, F. Chuah, H. Ting, & M. A. Memon (Eds.), Partial least squares structural equation modeling (PLS-SEM) using SmartPLS 3.0: An updated guide and practical guide to statistical analysis. Pearson. Ramayah, T., Hwa, C., Chuah, F., Ting, H., & Memon, M. (2018). PLS-SEM using SmartPLS 3.0: Chapter 13: Assessment of moderation analysis. In T. Ramayah, J. Cheah, F. Chuah, H. Ting, & M. A. Memon (Eds.), Partial least squares structural equation modeling (PLS-SEM) using SmartPLS 3.0: An updated guide and practical guide to statistical analysis. Pearson.
go back to reference Sanders, N., & Swink, M. (2020). Digital supply chain transformation: Visualizing the possibilities. Logistics Management (2002), 59(3), 42–48,50–53. Sanders, N., & Swink, M. (2020). Digital supply chain transformation: Visualizing the possibilities. Logistics Management (2002), 59(3), 42–48,50–53.
go back to reference Saxena, P. (2016). Technology trends for the digital supply chain. Manufacturing Business Technology. Saxena, P. (2016). Technology trends for the digital supply chain. Manufacturing Business Technology.
go back to reference Sheu, C., HsiuJu Rebecca, Y., & Chae, B. (2006). Determinants of supplier-retailer collaboration: evidence from an international study. International Journal of Operations & Production Management, 26(1), 24 - 49. http://www.emeraldinsight.com/https://doi.org/10.1108/01443570610637003 Sheu, C., HsiuJu Rebecca, Y., & Chae, B. (2006). Determinants of supplier-retailer collaboration: evidence from an international study. International Journal of Operations & Production Management, 26(1), 24 - 49. http://​www.​emeraldinsight.​com/​https://​doi.​org/​10.​1108/​0144357061063700​3
go back to reference Srinivasan, K., Kekre, S., & Mukhopadhyay, T. (1994). Impact of electronic data interchange technology on JIT shipments. Management Science, 40(10), 1291.CrossRef Srinivasan, K., Kekre, S., & Mukhopadhyay, T. (1994). Impact of electronic data interchange technology on JIT shipments. Management Science, 40(10), 1291.CrossRef
go back to reference Swink, M., & Nair, A. (2007). Capturing the competitive advantages of AMT: Design-manufacturing integration as a complementary asset. Journal of Operations Management, 25(3), 736.CrossRef Swink, M., & Nair, A. (2007). Capturing the competitive advantages of AMT: Design-manufacturing integration as a complementary asset. Journal of Operations Management, 25(3), 736.CrossRef
go back to reference Xue, L. (2014). Governance-knowledge fit and strategic risk taking in supply chain digitization. Decision Support Systems, 62, 54.CrossRef Xue, L. (2014). Governance-knowledge fit and strategic risk taking in supply chain digitization. Decision Support Systems, 62, 54.CrossRef
go back to reference Xue, L., Zhang, C., Ling, H., & Zhao, X. (2013). Risk mitigation in supply chain digitization: System modularity and information technology governance: JMIS. Journal of Management Information Systems, 30(1), 325.CrossRef Xue, L., Zhang, C., Ling, H., & Zhao, X. (2013). Risk mitigation in supply chain digitization: System modularity and information technology governance: JMIS. Journal of Management Information Systems, 30(1), 325.CrossRef
go back to reference Zhao, X., Huo, B., Selen, W., & Yeung, J. H. Y. (2011). The impact of internal integration and relationship commitment on external integration. Journal of Operations Management, 29(1/2), 17.CrossRef Zhao, X., Huo, B., Selen, W., & Yeung, J. H. Y. (2011). The impact of internal integration and relationship commitment on external integration. Journal of Operations Management, 29(1/2), 17.CrossRef
Metadata
Title
Supply Chain 4.0: the impact of supply chain digitalization and integration on firm performance
Authors
Kam Pui Liu
Weisheng Chiu
Publication date
10-11-2021
Publisher
Springer Netherlands
Published in
Asian Journal of Business Ethics / Issue 2/2021
Print ISSN: 2210-6723
Electronic ISSN: 2210-6731
DOI
https://doi.org/10.1007/s13520-021-00137-8

Other articles of this Issue 2/2021

Asian Journal of Business Ethics 2/2021 Go to the issue