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A path analytical analysis of organizational integration practices’ effects on manufacturing flexibility and competitive advantage

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Abstract

To cope with an increasingly turbulent environment, manufacturing firms increasingly implement integration practices to enhance flexibility in the production process. This research develops a framework to explore the relationships among organizational integration practices, manufacturing flexibility, and competitive advantage. The study develops valid and reliable instruments to measure these constructs, and it applies structural equation modeling to test relationships among these variables using a large sample. The results indicate strong, positive, and direct relationships between organizational integration practices and manufacturing flexibility, and between manufacturing flexibility and competitive advantage. The results also indicate that organizational integration practices enhance competitive advantage directly as well as indirectly by facilitating manufacturing flexibility.

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Correspondence to Qingyu Zhang.

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Mei Cao is an Assistant Professor at the University of Wisconsin-Superior. She received her Ph.D. in Manufacturing Management and Engineering from the College of Business Administration of the University of Toledo. She has publications in various academic journals such as International Journal of Operations and Production Management, European Journal of Operational Research, Information & Management, Industrial Management & Data Systems, International Journal of Product Development, International Journal of Services Technology and Management. She serves on the editorial board of International Journal of Information Technology Project Management. She received Distinguished Paper Award by McGraw-Hill/Irwin at the Midwest Business Administration Association Annual Meeting in Chicago in 2004. Her research interests include Supply Chain Management, Transportation and Logistics, Flexibility, and Inter-Organizational Information Systems.

Qingyu Zhang is an Associate Professor at Arkansas State University. He received his Ph.D. in Manufacturing Management and Engineering from the College of Business Administration of the University of Toledo. He is a Certified Fellow in Production and Inventory Management (CFPIM) by APICS. He has published in Journal of Operations Management, European Journal of Operational Research, International Journal of Production Research, International Journal of Operations and Production Management, International Journal of Production Economics, International Journal of Logistics Management, and elsewhere. He serves on the editorial board of Information Resource Management Journal, International Journal of Information Technology Project Management, and International Journal of Data Analysis Techniques and Strategies. He received two Highly Commended Paper Awards from European Journal of Innovation Management and Kybernetes: International Journal of Systems and Cybernetics, and Distinguished Paper Award by McGraw-Hill/Irwin at the MBAA Meeting in Chicago. He is interested in the interdisciplinary research on supply chain management, operations management, information systems, and data mining.

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Cao, M., Zhang, Q. A path analytical analysis of organizational integration practices’ effects on manufacturing flexibility and competitive advantage. J. Syst. Sci. Syst. Eng. 17, 277–296 (2008). https://doi.org/10.1007/s11518-008-5085-7

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