On the Relationship between Supplier Integration and Time-to-Market

Journal of Operations Management, Forthcoming

Posted: 25 Jan 2013

See all articles by Johan Perols

Johan Perols

University of San Diego - Department of Accountancy; University of San Diego - School of Business Administration

Carsten Zimmermann

University of San Diego - School of Business Administration

Sebastian Kortmann

University of Amsterdam Business School

Date Written: November 6, 2012

Abstract

Recent operations management and innovation management research emphasizes the importance of supplier integration. However, the empirical results as to the relationship between supplier integration and time-to-market are ambivalent. To understand this important relationship, we incorporate two major recent developments. First, the literature has started to redefine supplier integration into two dimensions, supplier product integration and supplier process integration. Second, recent research has begun to examine spillover effects that extend beyond the direct costs and benefits of the supplier contract. Using survey data of 116 firms in the industrials, health care, and information technology industries, the results confirm our hypotheses and show that supplier product integration decelerates time-to-market while supplier process integration accelerates time-to-market. The results also show a positive relationship between supplier integration and the adoption of external technologies, which either decelerates or accelerates time-to-market depending on the level of internal exploration activities. Our research, thus, helps to open the ‘black-box’ of the relationship between supplier integration and time-to-market, and provides a theoretically grounded explanation to the apparent contradictory results in prior research about the influence of supplier integration on time-to-market. In addition, we contribute to research on spillover effects by emphasizing that information technology adoption and assimilation is an important spillover effect of supplier integration.

Keywords: Time-to-Market, Supplier Integration, Information Technology Adoption and Assimilation, Internal Exploration Activities, Structural Equation Model

Suggested Citation

Perols, Johan and Zimmermann, Carsten and Kortmann, Sebastian, On the Relationship between Supplier Integration and Time-to-Market (November 6, 2012). Journal of Operations Management, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2206644

Johan Perols (Contact Author)

University of San Diego - Department of Accountancy ( email )

223 Olin Hall
5998 Alcalá Park
San Diego, CA
United States

University of San Diego - School of Business Administration ( email )

5998 Alcala Park
San Diego, CA 92110-2492
United States

Carsten Zimmermann

University of San Diego - School of Business Administration ( email )

5998 Alcala Park
San Diego, CA 92110-2492
United States

Sebastian Kortmann

University of Amsterdam Business School ( email )

Plantage Muidergracht 12
Amsterdam, 1018TV
Netherlands

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