Performance drivers are identified from the literature to guide future SC practices. Both accounting- and market-based financial performances are closely related to the effectiveness of SCM. As important performance drivers, sourcing strategy, information technology IT , SC integration, and external relationships play critical roles to improve firm-level financial performance. In particular, optimal levels of outsourceability, SC alignment and integration with IT infrastructure, and SC relationship management are essential to realize full financial advantages of effective SCM.
A better understanding and demonstration on how SCM makes positive contributions to financial performance help SCM managers to better communicate with top management and substantiate their roles in the organization. To the authors' best knowledge, this paper is the first and the most comprehensive literature review in a much-needed research area. A number of performance drivers are identified to provide practical guidance. Some promising research areas are suggested for further investigation.
Emerald Group Publishing Limited. Please share your general feedback. You can start or join in a discussion here. Visit emeraldpublishing. First, discriminant validity was assessed evaluating CFA and S. Shared variance d. Since h and e were standar- dized, g2 was equal to the squared correlation between the two constructs. In all but one case in the overall 4. Reliability and validity assessments sample i. Fornell and Larcker, ranging from The shared variances between Additionally, the segmented samples.
The construct- validity entailed analyzing all possible pairs of level scores were standardized mean-centered before constructs in a series of two-factor CFA models using they were entered into the regression analysis. Each model was run twice — once cases with missing values was used to estimate the constraining the f coefficient to unity and once freeing predictor variables on the criterion variables.
A x2-difference test was performed on In the full-sample analysis, we included three the nested models to assess if the Dx2 was significantly dummy variables to account for the four different lower for the unconstrained models Anderson and strategies i. The critical value Dx2 Dd.
See Table 7 for other dummy variables as 1 or 0, as applicable, for each complete results for the overall sample corresponding of the strategies. As such, for the overall model full- results were found for each segmented sample. Thus, sample analysis , we included the three dummy the six constructs and their purified 28 indicators were variables for the strategy types as well as the two found to be reliable, valid, and robust across samples. Testing for potential common method bias i. In the separate strategy-level analyses, Sweeney, ; Sanchez and Brock, The the control variables of OA and ATT were entered in rationale for this test is that if common method bias Step 1, the hypothesized direct-relationship variables poses a serious threat to the analysis and interpretation were entered in Step 2, and the moderators were entered of the data, a single latent factor would account for all in Step 3.
Additionally, as a part of the regression manifest variables Podsakoff and Organ, A analysis, we tested for multi-collinearity by calculating worse fit for the one-factor model would suggest that variance inflation factors VIF for each predictor common method variance does not pose a serious threat variable. All VIFs are less than 3. The one-factor model yielded a threshold of We Results strategy overall sample analysis ; DSE, dummy vari- able for the decoupled-extended strategy overall The hypothesis testing was accomplished via the sample analysis ; OA, online accessibility; ATT, atti- estimation of five hierarchical regression equations, tude toward Internet-ordering; EQ, eBusiness quality; one for the overall sample and one each for the firm- PQ, product quality; SQ, service quality; e, random level samples i.
In the separate regression analyses i. Consistent with the directional hypotheses, one-tailed tests were used for the direct effects and two-tailed tests were used for the moderator effects. Coefficients are from the final model after Step 3 in all cases.
R2 increase is reported based on difference between Steps 1 and 2; and Steps 2 and 3. The highest Regarding the hypothesized direct effects, all three VIF for the overall model was 2. Neither of the. Thus, H1—H3 were supported but not H4 or H5.
These results differ from predictors are relevant for which strategy type. The but insignificant in the overall model. These results differ from the overall analysis significant in the model. Neither the analysis. These results differ from the 6. Discussion overall analysis in that the control variable of ATT was insignificant in the fully extended strategy model but The results shown in Tables 5—7 provide two broad significant in the overall analysis. First, they provide an aggregate view of how customers perceive 5.
De-coupled strategy the various components of online ordering and home delivery. The mean values for each of the constructs Two of the predictor variables and two of the are shown for the overall sample in Table 5 and for moderators were significant in the analysis of the each sub-sample in Table 6.
Second, Attitude has a direct effect as a control variable for the the regression results reported in Table 8 provide complete model and for semi and centralized-extended. These overall sample. While there is a slight moderating effect results, too, can be compared across the four sub- for decoupled and centralized-extended, it is not samples to assess the effects of operational differences.
The R2 values range extended sample. Thus, there is not support for from a high of 0. This may be due, in part, to the 0. The overall sample has a R2 of growing use of broadband connections and the growing 0. The significance of the dummy variables for acceptance of Internet-ordering as an everyday shop- company indicates that there are substantial differ- ping experience. Alternatively, the two moderator ences at the strategy level. We will highlight this below. Managerial implications and future research In the overall sample, all three of the quality constructs eBusiness, product, and service are The findings from this study offer many useful significantly related to behavioral intentions.
Thus, insights for managers and have been utilized in some there is strong support for Hypotheses 1—3. At the instances to make operational and marketing changes. In contrast, the coefficient for eBusiness product-, and service-quality, customers are substan- quality, while significant for the overall model, is not tially more likely to stay with both that company and significant for either the semi-extended or decoupled- Internet-ordering as a primary method of shopping. This suggests that improvements The findings from this study, while focused on the in ebusiness quality are important for fully or home-delivery grocery industry, offer broad insights centralized-extended, but there is not a strong into Internet or multi-channel retailing.
As channels relationship for semi or decoupled-extended. Finally, converge and customers become more demanding, the it is interesting to note that the two grocers with the pressure to carefully integrate IT, marketing, and highest coefficients for service quality semi-extended operations will only increase. Companies cannot and de-coupled extended are the two that provide afford to be good at 1 or 2 things — they must deliver on indirect delivery customer pickup orders and very all three aspects of quality — eBusinesses, product, and limited delivery options, respectively.
Perhaps, the service. These correspond, in a broad sense to order limited nature of customer interaction for these two entry, production and delivery and failure in one grocers places a premium on getting it right when it results in failure for all. Secondly, the data suggest that does occur — i. While all can be tions, or there is a big bonus penalty for getting it successfully, there are important nuances regarding right wrong. Regardless, this is clearly an area, the treatment of IT, marketing, and operations that where both grocers should focus time and resources. Interestingly, the changing customer habits and encouraging adoption semi-extended grocer had the highest overall rating for of new products or services.
A broader and more service quality, but as often discussed in manufactur- thorough discussion of the numerous challenges for ing circles, variance is the enemy — many customers grocery home delivery is offered by Boyer et al. In contrast, There are numerous areas for further examination decoupled-extended has the lowest aggregate rating that we have not addressed. First, there is likely to be for service quality, but a high coefficient between a substantial learning curve for customers to under- service quality and behavioral intentions.
This grocer stand this new method of ordering groceries and to has spent the last year pursuing numerous initiatives to develop a degree of comfort. Future research should improve service quality and early findings from our examine the nature of the learning curve, including its follow-up study suggest that this effort is reaping shape and length, and search for ways to accelerate it.
Second, the data in our study are all cross-sectional, it Another interesting finding involves the role of would be interesting for future researchers to examine eBusiness quality. The lowest aggregate rating is for longitudinal data, including tie-ins to specific opera- fully extended, yet this grocer has the highest tional or marketing changes that the companies make.
Third, there is ample with it. This grocer has undergone a major site re- opportunity for researchers to examine specific design in the past year, since our initial data collection. Fourth, the choice of competitive scores for product quality. Yet, this grocer has a high priority — i. Again, this is examined in combination with both operational consistent with an Internet only grocer and the need decisions to support that priority as well as customer to build a degree of trust and brand recognition with perceptions of the online grocer.
Finally, the biggest customers. Can grocers make money off this H3 that IT, manufacturing, and marketing must be venture? Obviously, many of them think so or they carefully integrated to achieve success with online would not be investing large sums to develop this ordering for home delivery of groceries. However, industry. Obviously, there is substantial need for further research on this topic. We have neglected This research was conducted with Grant SES numerous other strategic factors that quite likely from the National Science Foundation.
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