Fernanda Paes Arantes
Federal University of Santa Catarina, Brazil
E-mail: nandapaesarantes@gmail.comx
Maria Silene Alexandre Leite
Federal University of Paraíba, Brazil
E-mail: leite@ct.ufpb.br
Antonio Cezar Bornia
Federal University of Santa Catarina, Brazil
E-mail: cezar.bornia@ufsc.br
Pedro Alberto Barbetta
Federal University of Santa Catarina, Brazil
E-mail: pedro.barbetta@ufsc.br
Submission: 25/04/2017
Revision: 16/05/2017
Accept: 13/07/2017
ABSTRACT
Integration is constantly reported in
the literature as an essential feature of SCM. However, it is as difficult to
define as to operationalize it, resulting in a lack of information on how to
increase the level of integration among members. Characteristics such as trust,
sharing of information, partnership, cooperation, collaboration and
coordination are constantly associated to the definition of SCM. However,
further studies are needed relating the contribution of each characteristic
separately, neglecting the multidimensional aspect of SCM. Thus, this research
aims to evaluate the dimensionality of SCI, to check alignment with the
features identified in the literature using multivariate statistical analysis.
The methodology used was based on a questionnaire to assess the level of
companies integration with suppliers of its supply chain, obtaining 205
answers. Full-information item factor analysis and principal component analysis
on the correlation matrix tetrachoric were used for the instrument
dimensionality analysis. They are appropriate procedures for analysis of
dichotomous variables. The results of this analysis enabled grouping the
questionnaire items in the following underlying factors: trust, information
sharing, partnership, collaboration or cooperation, and coordination. The
identification of such factors such as dimensions of SCI allows improving the
recognition of SCM as a multidimensional concept, allowing a greater
understanding on how to raise the level of integration among the members of a
supply chain. In addition, to think on every dimension separately may make the
planning of future actions easier as the individual aspects of each
characteritic may be discussed.
Keywords: supply chain integration;
characeristics; multidimensionality
1. INTRODUCTION
Integration
is constantly reported in the literature as an essential feature of the Supply
Chain Management (SCM) (NÄSLUND; HULTHEN,
2012; PEARCY;
GIUNIPERO, 2008; RICHEY JUNIOR et al., 2009). However, it is
as difficult to define integration as operationalize it, resulting in a lack of
information on how to increase the level of SCI (Supply Chain Integration) (NÄSLUND;
HULTHEN 2012).
The literature
defines SCI as the alignment of internal and external flows of a supply chain
through collaboration and coordination among members, seeking effective and
efficient flow of goods, services, information and financial, to generate value
for the end customer (JÜTTNER et
al., 2007; FABBE‐COSTES;
JAHRE, 2008; FLYNN et al.;
2010, THUN, 2010;
NÄSLUND; HULTHEN, 2012).
Associated to
this definition, many authors include characteristics such as trust, sharing of
information, partnership, cooperation, collaboration and coordination as part
of an integration (WU et al.,
2004; VAN DONK; VAN
DER VAART, 2005; TRKMAN et
al., 2007; ZHAO et al.,
2008; YEUNG et al.,
2009; ZHAO et al.,
2011; VAN DER VAART
et al., 2012; BASNET, 2013;
XU et al., 2014; HE et al., 2014; JACOBS et al., 2016).
The constant
association between such characteristics to the definition of SCM reveals a
consensus on such an association. (JÜTTNER et al., 2007; RICHEY JR et
al., 2009; FLYNN et al., 2010; THUN, 2010; NÄSLUND;
HULTHEN, 2012). However, further
studies are needed aiming to relate the contribution of each characteristic
separately in the development of an integration between members of a supply
chain.
Part of the
difficulty in addressing individual aspects of each characteristic may be
ascribed to a lack of clarity in the definitions found in the literature. They
generally occur as synonyms, alternating the terms that refer to the same
behaviors. This collaboration is addressed by Aryee et al. (2008) as a synonym of
SCM.
Danese (2013) uses collaboration
and partnership as synonyms. Many other examples may be found in the literature. Thus,
an analysis of the definitions separately is necessary, addressing them as
dimensions of SCM because each exerts diferente functions in integrating the
members.
The
understanding of SCM as a multidimensional concept is still scarce in the
literature. However, it is of utmost importance so that the integration be
increased simultaneously according to different practices (DANESE;
BORTOLOTTI, 2014). Trust consists
in believing in the partner’s integrity (MORGAN; HUNT, 1994).
Communication,
or sharing of information, is essential to a close understanding and
cooperation with suppliers and clientes, allowing a broad identification of the
clients’ requirements (ZHAO et al.,
2011). Partnership
demands from companies a structural change in how they relate to each other (MALONI;
BENTON, 1997).
Cooperation, or
collaboration, consists in mutual understanding interactions between partners (SPEKMAN et
al., 1998; WEI et al.,
2012; FAWCETT et
al., 2008). Coordination
encompasses all efforts in aligning decisions to achieve the global objectives
of the system (CAO et al.,
2008). The
identification of how each characteristic is related to an increase in the
integration level between the members of the supply chain will allow managers
to better plan their actions, working each characteristic according to its
specific traits.
This study aims
to evaluate the multidimensionality of SCM to allow a better planning of future
actions. Thus, a set of SCM indicators was established and applied, as a
questionnaire, to a sample of 205 company-supplier relationships. The answers
were analyzed based on multivariate statistical analysis, associating
indicators with predominant dimensions.
2. BACKGROUND LITERATURE
The SCI has been seen as a way to
develop competitive advantage from the management of the relationships, because
it reduces the response time to market changes (SEZEN, 2008;
KIM, 2009), enabling cost
savings by streamlining processes and eliminating redundancies (CHEN et al.,
2009; ROSENZWEIG et
al., 2003).
However, it is still common to see
companies ignoring the value of investing in internal and external
relationships to create competitive advantage. Hence, Souza et al. (2004) believe that
knowledge of practices that add value lacks to companies, therefore, they seek
immediate and one-off solutions, leading to under-utilization of their
potential.
The benefits of integration are
often translated into aspects valued by customers, such as product quality,
delivery reliability, process flexibility and cost leadership (ROSENZWEIG et
al., 2003). However, since
the market has customers increasingly demanding and companies, it can no longer
overcome on its own. In order to achieve integration, the members of the chain
should see each other as partners, working together in the development of
strategic planning, demand forecasts and setting of targets (KIM; LEE,
2010). However, to
achieve SCI, some characteristics must be identified in the relationship
between members, they are: trust, information sharing, partnership,
cooperation, collaboration and coordination (ARANTES et
al. 2014).
Trust is a basic feature for SCI
because, when working together, the actions of one reflect on others (MAYER et al.,
1995; CHOPRA;
MEINDL, 2003; KWON; SUH,
2005; JONES et al.,
2010; LAEEQUDDIN et
al., 2012; TEJPAL et
al., 2013).
This concept applied to the
management of relationships between businesses is the basis for the
construction of SCI, since, , joint work involves interdependence and therefore
it is necessary to depend on the other to achieve their goals (MAYER et al.
1995).
Thus, confidence in the integrity
of the partners leads companies to cooperate, since the current relationships
provide resources, opportunities and superior benefits to its competitors, with
exchange standard at the same level, strategic information sharing and lack of
opportunist behavior (MORGAN; HUNT
1994).
The performance of trust can be
classified by the fulfillment of high performance promises (JONES et al.
2010), by the
existence of standard procedures to perform as promised (FAWCETT et
al. 2012), by the quality
of interpersonal relations (CAI et al.
2010).
It is defined as the accomplishment
of actions that benefit the other, hoping that this is not used for their own
benefit, but as best for both (ARANTES et
al. 2014). Some steps to
building a relationship based on trust are: consider the relationship value,
stipulate operational tasks and decision rights for each party, create
effective contracts and design effective solutions to conflicts (CHOPRA;
MEINDL, 2003).
The wants and needs of consumers
are constantly changing and companies need to adapt to in order to remain
competitive. The best way to do it is by establishing a close relationship
between customers and suppliers through accurate flow of information demand,
which will reduce the time spent in production planning, decrease inventory and
make more business sensitive to customer needs (FLYNN et al.,
2010; CHOPRA;
MEINDL, 2003).
Information sharing can happen at
various levels, ranging from complete absence to full information sharing,
being an essential factor in reducing the bullwhip effect, which is the
distortion of demand information the further the member is from information in
the chain (SAHIN;
ROBINSON, 2002).
Some of the key information shared
are: performance measures (LEE; WHANG, 1998; LI et al., 2006), production
information and order status (LEE; WHANG, 1998; SAHIN; ROBINSON, 2002), cost
information (SAHIN;
ROBINSON 2002, LI et al.
2006), availability
of production capacity, inventory levels and demand forecasts (LEE; WHANG,
1998; SAHIN;
ROBINSON, 2002; LI et al.,
2006; DING et al.,
2011).
In order to increase efficiency in
sharing information, members of the chain can adopt compatible information
systems, facilitating problem solving and strategic decision making in a
collaborative way (ZHOU; BENTON
2007, HA et al.
2011). Thus,
information sharing in the supply chain, aiming to increase the level of
integration among members, is the exchange of strategic information that favor
the creation of competitive advantage for the chain as a whole (ARANTES et
al. 2014).
The relationship between the
members of a supply chain can be considered partnership where the parties interact
both in the short and long term, with common goals and shared benefits (RYU et al.,
2009; MALONI;
BENTON, 1997; CHEN; WU,
2010; SINGLETON;
CORMICAN, 2013). It is
essential, though, to deal with the problems of supply chain (SINGLETON;
CORMICAN, 2013).
The partnership requires, from
companies, a structural change in the way of relating, encouraging mutual
planning and solving problems together (MALONI;
BENTON, 1997). It also
requires members to be open to make adjustments in the relationship (CHEN; WU,
2010; MOTWANI et
al., 1998), that they
share capacity, risks, losses and gains (Vieira 2006), have
availability and flexibility to adapt to changes (CHEN; WU 2010), in addition to
work with fewer suppliers so that it is possible to develop a close
relationship with each of its partners (MALONI;
BENTON, 1997; MAHESHWARI ET
AL. 2006, CHRISTOPHER;
JÜTTNER 2000, LAMBERT;
COOPER 2000).
Cooperating is
"a mean to achieve a certain goal and not an end in itself". It
refers to a way of working together that generates benefits for all parts
involved in the process. Cooperation occurs
when two or more entities come together to obtain benefits that can’t be
achieved individually, sharing resources such as confidential information,
infrastructure, defining standards that improve the interoperability of their
systems, optimizing the tactical and operational planning of logistics
activities (AUDY et al.
2010).
Collaboration can
be defined as the ability to work beyond organizational boundaries to build
higher value-added and increase the ability to meet customer needs. It’s not
only about managing transactions, but developing and implementing new
approaches to problem solving considering trust as a basic principle.
Collaboration can be governed by contracts or informally (FAWCETT et
al., 2008).
Supply chain
processes coordination consists on the intensity in which a company can
structure its operational processes, the sharing of resources, rewards and
risks in the organizations, in order to become more competitive in the market
in which it operates (YEUNG et al.,
2009; SIMATUPANG et
al., 2002). Coordination
creates understanding among members, shapes human behavior and improves
competitiveness (MISHRA;
SHARMA, 2015). In other
words, coordination is to organize the activities of two or more groups so
that they are aware of one another's activities and can work together
efficiently (SINGH, 2011).
Consequently, it can be concluded
that, as part of SCI, cooperation and collaboration can be seen as carrying out
activities together, seeking greater gains for the chain as a whole; and
coordination is necessary to organize such joint actions, ensuring the best
possible result.
From the raised features, SCI
indicators that are related to each finding disagreement in the literature
about the relationship of the indicators with the characteristics of SCI were
identified, (Table 1). Part of this difference is justified because there is a
dependency relationship between some characteristics, since trust is cited as
information sharing prerequisite (LAAKSONEN et
al. 2009; CHENG et al.,
2010), partnership (WEI et al.,
2012; LAAKSONEN et
al. 2009), collaboration (SPEKMAN et
al., 1998; FAWCETT et
al., 2008) and cooperation
(MORGAN; HUNT,
1994); as well as
information sharing is cited as a prerequisite for partnership (SPEKMAN et
al.; 1998; DU et al.,
2012), collaboration (WIENGARTEN et
al., 2010; HA et al.,
2011) and cooperation
(MORGAN; HUNT,
1994; WEI et al.,
2012; JÜTTNER et
al. 2007).
Trying to find a consensus among
these opinions, this research brings together the SCI indicators using
full-information item factor analysis, and lists the factors obtained with the
features identified in the literature. This allows the understanding of what
the characteristics that have the greatest influence on each share of
integration between company and suppliers are.
3. METHODS
The selection of the research
method is one of the key decisions to be taken in its construction process,
since the collection of data requires a careful and systematic planning when it
comes to scientific research (LUDKE; ANDRÉ,
1986). Thus, for the
identification of SCI characteristics review of the literature method proposed
by Ensslin et al. (2010) was used, named
ProKnow-C Knowledge Development Process-Constructivist.
Table 1: SCI indicators related to the
characteristics
Indicators |
Trust |
Information sharing |
Partnership |
Collaboration |
Cooperation |
Coordination |
Interdependence |
|
|
|
|
|
|
Consideration of the impact of each action under the
other members of the supply chain |
|
|
||||
Interaction in the short and long term |
|
|
|
|
||
Open communication |
|
|
|
|
||
Greater willingness to take risks |
|
|
|
|
|
|
Quality of interpersonal relationships |
|
|
|
|||
Jointly troubleshooting |
|
|
|
|||
Exchange of strategic information at different
levels |
|
|
|
|
||
Use of compatible information systems |
|
|
|
|
||
Closer relations reducing the number of suppliers |
|
|
|
|
||
Benefits not individually achieved |
|
|
|
|
This method makes possible the information
systematization in a simple way through the bibliometric techniques and the
researcher judgment as to what is relevant, following the steps as shown in
Figure 1.
Figure 1: ProKnow-C Article
Process Selection
Initially a general review of SCI
was carried out in order to identify its characteristics, since they are not
all identified together on the same work; given the lack of consensus in the
literature. Using the databases ISI Web of Knowledge and Scopus, 1085
references were identified in the search by combining the keywords "Supply
Chain" in the title, and integration, in the abstract. Of this total, 390
titles were repeated and were eliminated, leaving 695 references remaining.
Then it was verified the alignment
of titles, eliminating over 222. The next step to get to the group of articles
that are more closely related to the subject of this research is to evaluate
them as to their scientific recognition, this is done by checking the number of
times each one has been cited in other works. ProKnow-C suggests using Google
Scholar for this check.
The number of citations of the 473
articles was verified using this feature and the results were organized in a
descending order spreadsheet. The relevant considered citations number is
determined by the author of the research, considering that the selection of the
most cited articles is able to represent the majority of this scientific
knowledge on current database (LACERDA et
al., 2012).
Therefore, considering that there
is still a high set of articles, the group representing 80% of the total number
of citations was determined as the cutoff point. The 473 articles total 6,992
citations; considering the cutoff point; the texts that are part of the most
cited set are the ones that add up to 80% of this amount. Hence, the articles
that make up this group, in this research, are those who received 14 citations
or more; which resulted in 126 titles.
From the confirmation of scientific
articles recognition by the number of citations, their abstracts are read and
then it is defined who will be part of the final repository. Among the 126 most
cited; 64 abstracts were considered aligned to the research topic, but five of
them had the complete text available on the accessed basis, remaining than 59
articles with relevant volume of citations; with abstract aligned with the
theme and full text available.
The 347 articles that have been
cited a few times or that have not been cited are not discarded; they are
divided into two groups and analyzed separately: more recent articles
(published after 2011) and older articles. Whereas the newest texts had not
enough time to receive a significant number of citations, it is necessary to
read their abstracts to identify those which would make the final portfolio of
articles, given its alignment with the theme. From 347 articles, 182 were
published in the last two years, and 109 were discarded for not presenting
abstract alignment with the subject of research, 20 were discarded for not
having the full text is available in basis and 53 were selected to compose the
articles portfolio by abstract alignment. After reading the complete texts; we
came up to a final set of 46 articles that led to the identification of the SCI
characteristics cited. From that, the search process shown in Figure 1 was
repeated for each one of the identified features as shown in Table 2, always
combined with the term "supply chain" located in the abstract.
Table2:
Complementary-literature selection
Keyword Step selection |
Trust |
“Information sharing” |
Partnership |
Collaboration and coordination and cooperation |
Keyword
location |
title |
title |
title |
abstract |
Total
titles |
302 |
743 |
405 |
71 |
Total
titles eliminating repetitions |
195 |
449 |
262 |
43 |
Aligned
titles |
73 |
196 |
136 |
18 |
BAB |
33 |
72 |
83 |
18 |
Aligned
abstracts |
22 |
17 |
30 |
4 |
Aligned
texts |
10 |
9 |
10 |
2 |
3.1.
Sample
and data collection
From SCI characteristics, a
questionnaire was designed to assess the level of companies’ integration with
suppliers of their supply chain. This instrument consisted of 21 items,
presented in Table 3, with response options: yes, no or not applicable.
Table3: Questionnaire to
assess the level of SCI
N |
Item |
I1 |
Is the quality of products consistent with the
expected? |
I2 |
Do good personal relationships help maintain this
relationship? |
I3 |
Is there a standard procedure to replace damaged
goods at delivery? |
I4 |
Is there a standard procedure to exchange products
under warranty? |
I5 |
Does he inform you if there is a delay in sending
the request? |
I6 |
Does he use a formal system to share information?
Which one? |
I7 |
Does this supplier know your stock? |
I8 |
Do you know his stock? |
I9 |
Do you have information on the costs of this
supplier? |
I10 |
Do you talk with your supplier about market
conditions; their predictions or expectations? |
I11 |
Does your supplier know your demand forecast? |
I12 |
Does he have access to your order production
information? |
I13 |
Long-term relationship? |
I14 |
Do you give preference to this supplier because of
the quality? |
I15 |
How is the communication with this supplier? Is it
open? |
I16 |
Do you exchange information with him seeking to
improve the product or process? |
I17 |
Is this supplier tolerant to any delay of payment? |
I18 |
Are there meetings for troubleshooting in
conjunction with this supplier? |
I19 |
Does this relationship give you some benefit that would
not be achieved individually? |
I20 |
Does he guarantee you a lower price? |
I21 |
Does he inform you in advance of a price increase? |
One of the issues to be taken into
account in the evaluation of supply chains is the varying need for managing and
the integration level between relationships. It depends on the relevance of
each member to the chain (LAMBERT;
COOPER 2000). In order to
evaluate the integration of the supply chain, an instrument must be used
alowing observing the relationships individually (CASTRO et al., 2015; VAN DER
VAART; VAN DONK, 2008). Thus, the questionnaire was
applied analyzing the company-supplier relationships.
The answers were collected by a
structured interview with managers of 41 companies. The question were about the
integration with some of the companies’ suppliers using the questionnaire shown
in Table 3. The application of the questionnaire using interviews obtains a
higher accuracy of answers, minimizing mistakes in the interpretation of
questions and ensuring a greater return rate, different from questionnaires
sent by e-mail (Bêrni et al., 2012). Each company
answered on average 5 questionnaires, resulting in a sample of 205
relationships. The number of questionnaires answered by each company varies
according to the number of suppliers and the availability of each respondent.
The questionnaires application was
concentrated in the city of Joao Pessoa, State of Paraiba, Brazil, 77% of the
responses were collected in this city; 20% in nearby cities and the remaining
3% in other states. The respondents sample comprises basically micro and small
businesses, which represent over 25% of the Brazilian GDP. They were selected
at random according to the availability of their managers. Most of the sample
is concentrated in the sectors of trade, food, construction and manufacturing
industry with 44%, 20%, 17% and 10% share respectively.
3.2.
Data
analysis
SCI is not well defined in the
literature; it is important performing tests proving the relationship of the
proposed features in the explanation of integration. In this sense,
multivariate statistics allows reducing and grouping the data, relating the
variables, even in the absence of a structured theoretical model (BAKKE et al.,
2008).
An important tool of multivariate
analysis is the factor analysis. It consists of a class of multivariate
statistical methods, in order to define an underlying structure in a data
matrix (HAIR Jr et
al., 2006). Besides being
an objective technique to identify common variability dimensions in a set of
variables (CORRAR et
al., 2006).
It can be applied when there is a
large number of correlated variables in order to identify a lower number of new
alternative variables, which somehow, summarize key information of the original
variables in factors or latent variables.
This data summarization enables
better information management generating more significant variables, easy to
work with (COSTA, 2007). In summarizing
the data in this way, the factor analysis captures the latent dimensions that
represent the data set on fewer concepts than the original individual variables
(COOPER;
SCHINDLER, 2003). It is
therefore an interdependence technique that evaluates all variables
simultaneously, each one connected with the other, using the concept of
statistical variable.
Factor analysis is often used when
a determination of dependent and independent variables is not previously
identified (COOPER;
SCHINDLER, 2003), since this
method makes it possible to relate the variables based on their correlation,
forming groups of highly interrelated variables (BAKKE et al.,
2008). These groups
represent dimensions that, together, can explain the integration (HAIR JR et
al., 2006). Thus, the
variables are combined in accordance with the latent integration feature that
they represent.
Factor analysis assumes that the
variables are continuous and it is based on the correlation matrix of those
variables. For dichotomous variables, it is possible to adjust the factor
analysis by adopting the matrix of tetrachoric correlation (BARTHOLOMEW;
KNOTT, 1999). A more recent
approach is called full-information item factor analysis, that uses the respondents
answers standards adjusting the response theory models to the multidimensional
item (WIRTH;
EDWARDS, 2007; BOCK;
GIBBONS, 1988).
4. RESULTS AND DISCUSSION
The different
latent features that compose the SCI can be seen through the graph of
eigenvalues of tetrachoric matrix correlation, consisting of the variance
explained by each factor shown in Figure 2. This graph is the result of
principal component analysis, and factor analysis, it reduces the number of the
original set variables in main components, generating new coordinates, simpler
to be analyzed. The analysis of this graph indicates that the set of items used
to assess the SCI can be grouped in approximately 4 factors.
Figure 2 -
Eigen values of tetrachoric matrix
The percentage of variance
explained by the full-information item factor analysis model (Table 4)
indicates that 72% of the model change can be explained with 4 factors, and 79%
if 5 factors are considered. By this criterion, it is reasonable to consider
the number of factors that exceeds 70% of variance explained by the model, and,
according to Reckase (2009), the aim of factor
analysis is to find the smallest number of factors that explain the latent
variable. However, it is important to note the information gain by adding
another factor, in addition to observing the theoretical coherence of the
proposed pool.
Table4: Percentage of
variance explained by the model
Dimensions |
Factors |
Total |
||||
F1 |
F2 |
F3 |
F4 |
F5 |
||
1 |
35% |
- |
- |
- |
- |
35% |
2 |
34% |
14% |
- |
- |
- |
48% |
3 |
23% |
22% |
16% |
- |
- |
61% |
4 |
19% |
19% |
15% |
18% |
- |
72% |
5 |
19% |
18% |
14% |
14% |
14% |
79% |
A way to verify the information gain with an increase
in the number of dimensions is to observe the Akaike (AIC) and Bayesian (BIC)
information criterion shown in Table 5, based on the response theory models to
the item of different sizes. They are criteria used for selecting the most appropriate
model to the data, calculating the increase in information of a model while the
number of dimensions based on the value of the maximum likelihood and the
number of degrees of freedom increases (TEZZA, 2012). The smaller
the AIC and BIC value, the more appropriate is the model.
Table5: Analysis of
information gain with increasing number of dimensions
N. of factors |
AIC |
BIC |
1 |
3.730.038 |
3.869.604 |
2 |
3.583.755 |
3.789.782 |
3 |
3.512.975 |
3.782.139 |
4 |
3.438.426 |
3.767.404 |
5 |
3.352.603 |
3.738.072 |
Based on principal component analysis and the
percentage of variance explained by the model, the observed set of variables could
be grouped into 4 factors. However, indicators of AIC and BIC suggest that 5
dimensions best explain the SCI. Therefore, adjustment of factorial analysis
models for different numbers of dimensions was verified, noting that the
5-dimensional model adequately adjusts the SCI features identified in the
literature.
In order to obtain better estimates
of the factor loadings, a template was adjusted restricting the positioning of
the items on the scale proposed by the previous model, obtaining the results shown
in Table 6. Thus were defined as dimensions of SCI: information sharing, trust,
partnership, cooperation or collaboration and coordination. The results
reinforce the idea according to which integration is a multidimensional concept
(VALLET-BELLMUNT; RIVERA-TORRES, 2013) and that such
aspect must be taken into account to improve the integration level in their
different practices (DANESE;
BORTOLOTTI, 2014).
The feature that
should be seen as the basis for constructing the integration in a supply chain
is trust among members. Feature that involves maintaining the quality standard
of the product supplied (JONES et al.,
2010), the existence
of standard procedure to replace damaged goods on delivery or within warranty (CHOPRA;
MEINDL, 2003; FAWCETT ET
AL., 2012) and good
personal relations between the parties (CAI et al.,
2010), which will
favor the development of the business relationships.
Table6: Factor loadings in
the dimensions of SCI obtained with the restricted model of Full-Information
Item Factor Analysis
N |
Item |
F1 |
F2 |
F3 |
F4 |
F5 |
Information Sharing |
|
|
|
|
|
|
I5 |
Does he inform you if there is a delay in sending
the order? |
0.561 |
||||
I8 |
Do you know his inventory? |
0.397 |
||||
I12 |
Do you have access to his order production
information? |
0.617 |
||||
I15 |
How is the communication with this supplier? Is it
open? |
0.587 |
||||
I16 |
Do you exchange information with him seeking to
improve the product or process? |
0.538 |
||||
I21 |
Does he inform you in advance of a price increase? |
0.542 |
||||
Trust |
|
|
|
|
|
|
I1 |
Is the quality of products consistent with the
expected? |
0.473 |
||||
I2 |
Do good personal relationships help maintain this
relationship? |
0.748 |
||||
I3 |
Is there a standard procedure to replace damaged
goods on delivery? |
0.602 |
||||
I4 |
Is there a standard procedure to exchange products
under warranty? |
0.724 |
||||
Partnership |
|
|
|
|
|
|
I13 |
Long-term relationship? |
0.542 |
||||
I19 |
Does this relationship give you some benefit that
would not be achieved individually? |
0.536 |
||||
I20 |
Does he guarantee you a lower price? |
0.841 |
||||
Collaboration/Cooperation |
|
|
|
|
|
|
I11 |
Does your supplier know your demand forecast? |
0.782 |
||||
I14 |
Do you give preference to this supplier because of
the quality? |
0.733 |
||||
I17 |
Is this supplier tolerant to any delay of payment? |
0.728 |
||||
I7 |
Does this supplier know your stock? |
0.786 |
||||
Coordination |
|
|
|
|
|
|
I6 |
Do you use any formal system to share information?
Which one? |
0.524 |
||||
I9 |
Do you have information on the costs of this
supplier? |
0.663 |
||||
I18 |
Are there meetings for troubleshooting in
conjunction with this supplier? |
1.534 |
||||
I10 |
Do you talk with your supplier about market
conditions, their predictions or expectations? |
1.153 |
Reporting to customer order status, warning about possible
delays in the delivery of future price increases and inventory levels are part
in the dimension of sharing information (LEE; WHANG, 1998; SAHIN; ROBINSON, 2002; LI et al., 2006). In addition,
it is expected that communication between partners in the supply chain is open,
allowing the exchange of ideas and suggestions seeking to improve the product
or production process.
To the latter, the result differs from that found in
the literature. An open communication was initially related to trust (KWON; SUH, 2005; LAEEQUDDIN et al., 2012) and to
partnership (MOTWANI et al. 1998). Exchange of
information to suggest changes in the processes was associated with partnership
(MOTWANI et al. 1998; CHEN; WU, 2010). Although such
elements are related to the characteristics mentioned, the statistical analysis
suggests that these indicators are more related to sharing of information.
The aspects of these two
characteristics develop over time and the success on the basis of the
construction of SCI leads companies to a long-term relationship, signaling the
formation of a partnership (CHRISTOPHER;
JÜTTNER, 2000; MAHESHWARI et
al., 2006; RYU et al.,
2009). This
partnership provides benefits for companies that would not be achieved working
individually, for example, supply with greater discount due to time and other
characteristics of the relationship (VIEIRA, 2006;
SINGLETON; CORMICAN, 2013).
The joint work, developed over
time, leads to collaboration and cooperation between companies, transferring
the demand and inventory information for members the amount to increase
accuracy in decision-making (VIEIRA, 2006;
SPEKMAN et al., 1998), reducing the
bullwhip effect. Collaboration and cooperation also means being tolerant to any
delay in payment and providing a quality product that meets the needs of the
end customer.
Although information sharing is
considered as a basic feature of SCI, certain information is shared only when
companies already have a high level of integration also influencing on how this
information is shared among members of the supply chain. These aspects of SCI
can be defined as coordination with companies making decisions and solving
problems together, sharing cost information with supplier and facilitating
access to their information using information systems compatible (CAO et al.,
2008; SINGH, 2011;
ZHAO et al., 2011).
Some of the values shown in Table
6 deserve
attention, as the factor load in item 8, which seeks to know if the company
receives updated information from the supplier of the inventory involved. This
item presents problems of interpretation, which generated a lower result than
expected. On the other hand, the last two items on the coordination had factor
loadings higher than 1, which according to Jöreskog (1999), may occur when
the factors are related, indicating that the greater the load factor, the
greater the ratio between factor and items.
This variables reduction, provided
by factor analysis, allows us to better understand how to increase the level of
integration among the members of a supply chain, since we can work with less
complex variables. Based on it, we can individually study each of the
identified features, combining their individual ways to increase the level of
SCI.
However, it is noteworthy that some
actions are more complex than others. This implies that the SCI must be
installed in a gradual way and its evolution depends on how relationships with
partners in the supply chain are conducted. As trust among members increases,
and more joint actions are developed, the performance of the supply chain
increases, generating higher earnings for the most integrated members.
5. CONCLUSION
The SCI is a very broad topic,
covering different characteristics and this has led the authors to have
different definitions that vary according to the approach used in their
analysis, limiting planning the construction of an integrated supply chain. The
evaluation of SCM muldimensionality allowed separating different practices
according to a predominant characteristic. To acknowledge one of these
characteristic as part of SCM allows improving to a better definition,
facilitating planning inside organizations.
SCM is a multidimensional concept. To
find ways to improve integration in supply chains, it must be seen as such.
This is an aspect little studied by the existing literature on this topic. This
study is a small step in that direction. However, much must still be discussed
on this topic.
One limitation found in studies on
companies is representative samples because of the lack of availability to
participate in academic research (BORTOLOTTI,
2010). Thus, assessing
the dimensionality of the instrument in another sample is needed to determine
the generalizability of the results (Immekus and
Imbrie 2014).
As further research, we suggest the
broadening of each characteristic related to SCM. In addition to deciding
whether an instrument for measuring the SCI level is expected to generate a
total score for all items or if scores are generated for each dimension.
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