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Organizational Structure, Integration, and Manufacturing Performance: a Conceptual Model and Propositions

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Organizational Structure, Integration, and Manufacturing Performance: a Conceptual Model and Propositions
Volume 5• Number 1 • January - June 2012

ORGANIZATIONAL STRUCTURE, INTEGRATION, AND MANUFACTURING PERFORMANCE: A CONCEPTUAL MODEL AND PROPOSITIONS
Universidade do Vale do Rio dos Sinos rafaelte@unisinos.br

Rafael Teixeira

Xenophon Koufteros
Texas A&M University xkoufteros@mays.tamu.edu

Xiaosong David Peng
Texas A&M University xpeng@mays.tamu.edu

ABST R AC T: One major characteristic of studies in operations and supply chain management literature is a focus on how integration can lead to superior operations and manufacturing outcomes. Most of these studies, however, focus only on internal or external integration and few have been dedicated to understand how both internal and external integration influence performance outcomes. In addition, few studies, if any, have looked to the antecedents of organizational structure as a driver for such forms of integration. To help filling this gap, we draw on organizational structure and resource-based view theoretical perspectives to present a conceptual model that proposes a relationship between organizational structure and integration. The model also considers major antecedents of organizational structure and the manufacturing performance consequences of integration. As a result, we introduce a series of propositions to be subject to empirical scrutiny as well as serve as a reference for future conceptual and empirical models.

1. I N T RODUC T ION Because of the competitive challenges imposed by globalization, which has made firms adopt practices such as outsourcing and cooperation between companies (Harland, Lamming, & Cousins, 1999), literature in operations management has placed considerable attention in the supply chain phenomenon (Chen & Paulraj, 2004; Ireland & Webb, 2007; Ketchen & Hult, 2007; Krause, Handfeld, & Tyler, 2007; Li, Rao, RaguNathan, & Ragu-Nathan, 2005; Storey, Emberson, Godsell, & Harrison, 2006). Organizations that want to succeed have to enhance their connections with other

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