Doctoral Dissertations

Nancy W. Nix

Date of Award

12-2001

Degree Type

Dissertation

Degree Name

Doctor of Philosophy

Major

Business Administration

Major Professor

John T. Mentzer

Committee Members

Gary N. Dicer, James H. Foggin, Ronald Foresta

Abstract

This study investigated the value of global integration of supply chain activities and processes for global companies. In-depth interviews were conducted with thirty-five managers in three global businesses, and included representatives from across supply chain functions and geographic regions. The participating businesses represented three industries with different environmental influences. Means-end theoretical frameworks and research methodologies were applied in the analysis process. Hierarchical value maps developed for each business provided a visual representation of the attributes, consequences, goals and values of global integration important to each. Similarities across businesses were examined to identify processes important to achieve global integration. The costs and benefits to the firm, and overall contribution to the firm's goals or objectives were also identifiedDifferences across firms were examined to explain the influence of environmental and organizational factors.

Theoretical frameworks and research propositions were developed to describe the relationships between environmental factors and the attributes, consequences, goals, and values of global integration for three distinct areas: (1) at the supplier interface, (2) at the customer interface, and (3) across supply chain functions. The three participating businesses differed in the focus of their global integration initiatives, as well as the degree of cross-functional integration considered important. However, in every case, global integration of specific supply chain activities and processes were important to the firm's ability to achieve business objectives.

Global integration at the supplier and customer interface results in increased bargaining power and/or improved relationships with important global suppliers and customers. Global integration of cross-functional supply chain processes results in operating flexibility to dynamically balance global sources of supply with global demand. Such operating flexibility allows the firm to dynamically realign scarce supply to selectively satisfy demand globally. As a result, firms can optimize their product mix and more effectively utilize raw materials and production capacity. Such operating flexibility also gives firms the ability to exploit geographic differentials in growth and profitability, and minimize the risk associated with demand variability.

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