The influence of supplier integration and lean practices adoption on operational performance

Bento, Graziela dos Santos; Schuldt, Klaus Siegmar; Carvalho, Luciano Castro de

doi:10.1590/0104-530X3339-20

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Original Article • Gest. Prod. 27 (1) • 2020 • https://doi.org/10.1590/0104-530X3339-20 copy

The influence of supplier integration and lean practices adoption on operational performance

A influência da integração do fornecedor e da adoção de práticas lean no desempenho operacional

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract

This study investigates the influence of supplier integration and lean practices on operational performance indicators: cost, quality, delivery, flexibility and speed of new products introduction. The proposed relationships are analyzed using survey data from a sample of 112 medium-sized textile companies in Brazil. The results suggest that supplier integration is significantly and positively associated with the speed of new products introduction, while lean practices are significantly and positively associated with operational performance indicators, except delivery. In addition, supplier integration does not support lean practices for any of operational performance indicators tested.

Keywords:
Supplier integration; Lean practices; Operational performance

Dimension	Code	Items	Ref.
Involvement with Supplier	SUPP01	We involve key suppliers in the product design and development stage.	Chen & Paulraj (2004)Chen, I. J., & Paulraj, A. (2004). Towards a theory of supply chain management: the constructs and measurements. Journal of Operations Management, 22(2), 119-150. http://dx.doi.org/10.1016/j.jom.2003.12.007. http://dx.doi.org/10.1016/j.jom.2003.12....
	SUPP02	We have key supplier membership/participation in our project teams.
	SUPP03	Our key suppliers have major influence on the design of new products.
	SUPP04	There is a strong consensus in our firm that supplier involvement is needed in product design/development.
	SUPP05	We involve our key suppliers in business and strategy planning.
	SUPP06	We have joint planning committees/task forces on key issues with key suppliers
Lean Practices	LEAN01	Our firm has continuous quality improvement program	Li et al. (2005)Li, S., Rao, S. S., Ragu-Nathan, T. S., & Ragu-Nathan, B. (2005). Development and validation of a measurement instrument for studying supply chain management practices. Journal of Operations Management, 23(6), 618-641. http://dx.doi.org/10.1016/j.jom.2005.01.002. http://dx.doi.org/10.1016/j.jom.2005.01....
	LEAN02	Our firm pushes suppliers for shorter lead-times
	LEAN03	Our firm reduces set-up time
	LEAN04	Our firm uses a “Pull” production system
	LEAN05	Our firm streamlines ordering, receiving and other paperwork from suppliers
Operational performance	OPER01	We have implemented improvements in the process that reduce production costs (Cost)	Adapted from Ahmad & Schroeder (2003)Ahmad, S., & Schroeder, R. G. (2003). The impact of human resource management practices on operational performance: recognizing country and industry differences. Journal of Operations Management, 21(1), 19-43. http://dx.doi.org/10.1016/S0272-6963(02)00056-6. http://dx.doi.org/10.1016/S0272-6963(02)...
	OPER02	We have been able to manufacture our products according to the specifications made in product design (Quality)
	OPER03	We can deliver the goods to our customers within the agreed timeframe (Reliability)
	OPER04	We can quickly change production volume and variety of products to meet customer demand (Flexibility)
	OPER05	We usually launch new products on the market before our competitors (Speed)

Dimensions	Items	Loads	P-value	R²	χ²/df	CFI	GFI	RMSEA
Supplier integration	SUPP01	0.660	^* ***** p-value < 0.01; R2 - Coefficient of determination; χ2/df - chi-square statistic/Degree of freedom; CFI - Comparative Fit Index; GFI - Goodness-of-fit; RMSEA - Root-Mean-Square Error of Approximation.	0.44	3.330	0.894	0.902	0.161
	SUPP02	0.822	***	0.68
	SUPP03	0.727	***	0.53
	SUPP04	0.755	***	0.57
	SUPP05	0.554	***	0.31
	SUPP06	0.535	***	0.29
Lean Practices adoption	LEAN01	0.629	***	0.40	2.788	0.888	0.944	0.141
	LEAN02	0.573	***	0.33
	LEAN03	0.830	***	0.69
	LEAN04	0.294	0.017	0.09
	LEAN05	0.456	***	0.21

Dimensions	Items	Loads	P-value	R²	χ²/df	CFI	GFI	RMSEA
Supplier integration	SUPP01	0.636	^* ***** p-value < 0.01; R2 - Coefficient of determination; χ2/df - chi-square statistic/Degree of freedom; CFI - Comparative Fit Index; GFI - Goodness-of-fit; RMSEA - Root-Mean-Square Error of Approximation.	0.40	2.732	0.975	0.969	0.08
	SUPP02	0.767	***	0.59
	SUPP03	0.767	***	0.59
	SUPP04	0.819	***	0.67
Lean Practices adoption	LEAN01	0.670	***	0.45	3.226	0.938	0.947	0.07
	LEAN02	0.640	***	0.41
	LEAN03	0.861	***	0.74
	LEAN05	0.630	***	0.40

Dimension	CR	AVE
Supplier integration	0.84	0.56
Lean practices adoption	0.80	0.50

Dimensions in pairs		No restriction		With restriction		*χ² Difference
Dimensions in pairs		χ²	df	χ²	df	*χ² Difference
Supplier integration	Lean Practices’ adoption	46.751	16	73.664	20	26.913

Independent variable	Dependent variable	Coefficient	p-value	R²
Supplier integration	Lean Practices	0.086	0.498	0.007
Supplier integration	Cost	0.040	0.580	0.399
Lean Practices	Cost	0.625	***	0.399
Supplier integration	Lean Practices	0.160	0.228	0.026
Supplier integration	Quality	0.186	0.095	0.165
Lean Practices	Quality	0.333	0.007	0.165
Supplier integration	Lean Practices	0.146	0.268	0.021
Supplier integration	Delivery	0.039	0.732	0.025
Lean Practices	Delivery	0.149	0.221	0.025
Supplier integration	Lean Practices	0.131	0.315	0.017
Supplier integration	Flexibility	0.066	0.558	0.079
Lean Practices	Flexibility	0.264	0.031	0.079
Supplier integration	Lean Practices	0.192	0.153	0.037
Supplier integration	Speed	0.322	0.005	0.197
Lean Practices	Speed	0.251	0.034	0.197

Universidade Federal de São Carlos Departamento de Engenharia de Produção , Caixa Postal 676 , 13.565-905 São Carlos SP Brazil, Tel.: +55 16 3351 8471 - São Carlos - SP - Brazil
E-mail: gp@dep.ufscar.br

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[TFN1] ^***
p-value < 0.01; R2 - Coefficient of determination; χ2/df - chi-square statistic/Degree of freedom; CFI - Comparative Fit Index; GFI - Goodness-of-fit; RMSEA - Root-Mean-Square Error of Approximation.