Performance effects of supply chain integration: The relative impacts of two competing national culture frameworks

Abstract

The effects of supply chain integration on operational performance have been investigated in past research. However, this relationship has not been tested in the context of national culture, which forms the major objective of this study. Furthermore, a second objective is to identify the elements of national culture that have a significant moderating effect on this relationship. Following this line of inquiry, a third objective is to uniquely investigate the relative efficacy of the Hofstede and GLOBE national culture frameworks. Data from the fifth survey round of the Global Manufacturing Research Group (GMRG) from 1,017 manufacturing plants in 14 countries were utilized for hierarchical linear model (HLM) analysis. This study shows, first, that supply chain integration has a positive effect on delivery performance across national cultures. Second, this relationship was affected by two national culture dimensions: uncertainty avoidance and future orientation. It was found that investments in supply chain integration are more beneficial for societies that score high on uncertainty avoidance, and low on the future-orientation scales. Third, between GLOBE and Hofstede culture frameworks, the GLOBE framework proved more effective in capturing the influence of national culture in this context.

Keywords:

• Global manufacturing
• supply chain management
• national culture
• empirical study

PUBLIC INTEREST STATEMENT

Manufacturing supply chains, such as the ones for smartphones, cars, clothing, and many other products are increasingly international, spanning many cultures. Our world is more connected than ever, but national and cultural differences exist that may influence the success of integrated supply chains. The question is how to improve their effectiveness and efficiency, accounting for possible cultural traits which may significantly affect the performance of global supply chains. This study investigates which national culture dimensions have an impact on supply chain integration outcomes. In addition, a direct comparison of two widely used national culture frameworks is undertaken in this study. The results of this comparison suggest their practical applicability not only for supply chains but also for other efforts to integrate independent organizations closely across cultures.

Additional information

Funding

The authors received no direct funding for this research.

Notes on contributors

Torsten Doering

Torsten Doering is an Associate Professor at Daemen College, NY and an Assistant Professor at Minerva Schools, CA. He has 20 years of managerial experience in Germany and the U.S. His research area is in empirical supply chain management with a focus on demand planning, collaboration, and integration in an international context.

Jurriaan de Jong is an Assistant Professor at the University at Buffalo. His research is focused on healthcare operations and supply chain management and buyer-supplier relationships. De Jong has extensive managerial and consulting experience in manufacturing and retail environments.

Nallan Suresh is UB Distinguished Professor in the School of Management at The State University of New York at Buffalo, and Associate Director of Institute for Sustainable Transportation & Logistics. Specializing in manufacturing, logistics and supply chain management, he has published numerous articles in academic journals and worked with many firms in N. America and Asia.