The Relationship Linking Supply Logistic Integration, Supply Performance and Lean Processes Towards Competitive Performance

Abstract

Purpose - The purpose of this paper is to examine the value chain processes that represent the “black box” between supply logistics integration and competitive operational performance in firms. To realize this objective, the authors develop a research model, which comprises a series of linkages from supply logistics integration to operational outcomes using Porter’s concept of value chain and the relational view of resource-based theory as theoretical lenses. Design/methodology/approach - The data set for testing the hypothesized relationships in this study was drawn from Malaysian manufacturing firms. Findings - The data set for testing the hypothesized relationships in this study was drawn from Malaysian manufacturing firms. Practical Implication - This study re-emphasizes the importance of building production process capabilities based on the effective principles of lean practices and supplier management. Research limitations/implications - The study shows the importance of managing both internal (production processes) and external processes (logistics supply chain) of firms’ operations in an integrated manner in which supply integration act through key internal processes to impact competitive performance which the end customers actually experience. Originality/value - This is the first study, which uncovers what happens “in between” the incoming materials and the end outputs delivered by firms into the market. Thia “in between black box” is important in improving our understanding of how inbound supply activities are translated into outbound competitive performance outcomes.