Strategic consensus between functions and the role of supply chain technology as moderator
Journal of Industrial Engineering and Management
JIEM
2013-0953
Strategic Consensus Between Functions and the Role of Supply Chain Technology as Moderator
Titik Kusmantini 0
Tulus Haryono 1
Wisnu Untoro 1
Ahmad Ikhwan Setiawan 1
0 Faculty of Economics and Business, Universitas Pembangunan Nasional ?Veteran? Yogyakarta, a doctoral student in PDIE (Doctoral Program in Economics) , Universitas Sebelas Maret Surakarta , Indonesia
1 Faculty of Economic and Business, Universitas Sebelas Maret , Surakarta , Indonesia
Purpose: This study aims to identify whether the higher degree of fit between supply chain strategy and manufacturing strategy will result in a better performance. When the choice of supply chain technology (integrative SC technology and functional SC technology) to support the alignment of the strategy will then strengthen the relationship between degree of fit with performance. Design/methodology/approach: Strategic alignment test between the functions uses 102 SMEs (Small and Medium Enterprises) in Yogyakarta Province, Indonesia with purposive sampling technique. The data are collected by distributing questionnaires to the companies that qualify the criteria of the sample, respondent target are procurement manager or production manager. Findings: Samples are grouped into two ideal types of strategies used mean split technique. 53 SMEs adopt ASCS (Agile Supply Chain Strategy) and 49 SMEs adopt LSCS (Lean Supply Chain Strategy). Two of the strategy groups have a low value of misfit score; it means that the degree of fit between supply chain strategy and manufacturing strategy is high. The result of the hierarichal moderated regression test shows that a regression coefficient values is negative both in LSCS and ASCS group, but the hypothesis test is only proven on ASCS group while LSCS group is not significant. The test of the moderate effect of the choice of SC technology on the two strategy groups is proved to be significant. Research limitations/implications: (1) The empirical finding of bivariate fit model test encourage a research space to explore the other contingent variable besides manufacturing strategy. For example, other function or corporate strategy. (2) The measurement of the company performance becomes the objective of the success of the alignment of supply chain strategy with the contingent variable which should be specified using the supply chain performance. Originality/value: The use of Euclidean distance formula is expected to cover the technical limitations of contingency test by using interaction approach between the complex variables; the value of misfit score reflects the extent to which program alignment between the company functions.
misfit score; euclidean distance; mean split; contingent variable; simple regression technique
To cite this article:
Kusmantini, T., Haryono, T., Untoro, W., & Setiawan, A.I. (2018). Strategic Consensus Between Functions and
the Role of Supply Chain Technology as Moderator. Journal of Industrial Engineering and Management, 11(4),
735748. https://doi.org/10.3926/jiem.2652
1. Introduction
Globalization has an impact on the level of business competition that is increasingly competitive and has changed
the phenomenon of business competition which is no longer based on the ability of individual companies, but
based on the supply chain. The focus of research on supply chain strategy sees interdependency issues among
companies as a critical issue that needs to be managed well in an effort to improve company performance. The
empirical concept of strategic alignment or strategic fit in the past two decades has prompted a number of
researchers because of empirical evidence that the direct impact of supply chain strategy on performance has not
been conclusive.
Venkatraman and Camillus (1984) and Kathuria, Joshi and Porth (2007) stated that the concept of strategic
alignment or fit is one important thing in the process of strategy formulation and implementation. Recently, the
topic of strategic alignment or fit has become a major and popular topic in strategic management research
(Tan &
Tan, 2005; Han, Wang, & Naim, 2017)
. Considering the critical role of the strategy as the direction for the company
in order to achieve the short-term business goals and encourage the company's ability to survive in an increasingly
competitive era, some strategy management researchers are more interested in assessing the effect of strategic
alignment on performance rather than assessing the strategy practice directly on performance.
Porter (1980) defines the concept of strategy alignment as a critical and fundamental element that should be
pursued by all companies because it is not only able to create a competitive excellence, but also able to create the
sustainable competitive excellence of the company. Porter also defines strategic alignment as an effort that needs to
be pursued by the company in order to create alignment efforts between the activities in the (...truncated)