The Relationships between External Integration and Plant Improvement and Innovation Capabilities: The Moderation Effect of Product Clockspeed

Journal of Supply Chain Management, Volume 49, Issue 3, July 2013, Pages 3–24

Mays Business School Research Paper No. 2099251

40 Pages Posted: 4 Jul 2012

See all articles by David Xiaosong Peng

David Xiaosong Peng

Lehigh University

Rachna Shah

University of Minnesota - Twin Cities - Department of Operations and Management Science

Roger Glenn Schroeder

University of Minnesota - Twin Cities - Department of Operations and Management Science

Anto Verghese

Texas A&M University (TAMU) - Department of Information & Operations Management

Date Written: July 3, 2012

Abstract

Product clockspeed as represented by the rate of product changes has important implications for supply chain design. The literature suggests that external integration with customers and suppliers is associated with increased improvement and innovation capabilities of the focal firm. However, the way product clockspeed affects these relationships has seldom been subjected to empirical investigation. This study investigates whether product clockspeed moderates the relationship between external integration and improvement and innovation capabilities of manufacturing plants. Analysis of survey data collected from 238 manufacturing plants indicates a positive moderation effect of product clockspeed on the relationship between customer integration and plant improvement and innovation capabilities. However, product clockspeed does not have a significant moderation effect on the relationship between supplier integration and either of the two plant capabilities. This study provides theoretical and managerial insights into aligning external integration with plant capabilities under the contingency of product clockspeed.

Keywords: clockspeed, customer integration, supplier integration, capabilities, manufacturing, survey methods, regression analysis

JEL Classification: D20, D2, M11, L23

Suggested Citation

Peng, David Xiaosong and Shah, Rachna and Schroeder, Roger Glenn and Verghese, Anto, The Relationships between External Integration and Plant Improvement and Innovation Capabilities: The Moderation Effect of Product Clockspeed (July 3, 2012). Journal of Supply Chain Management, Volume 49, Issue 3, July 2013, Pages 3–24, Mays Business School Research Paper No. 2099251, Available at SSRN: https://ssrn.com/abstract=2099251

David Xiaosong Peng (Contact Author)

Lehigh University ( email )

621 Taylor Street
Bethlehem, PA 18015-3027
United States

Rachna Shah

University of Minnesota - Twin Cities - Department of Operations and Management Science ( email )

Minneapolis, MN 55455
United States

Roger Glenn Schroeder

University of Minnesota - Twin Cities - Department of Operations and Management Science ( email )

Minneapolis, MN 55455
United States

Anto Verghese

Texas A&M University (TAMU) - Department of Information & Operations Management ( email )

Langford Building A
798 Ross St.
College Station, TX 77843-3137
United States

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