Influence of resource‐based capability and inter‐organizational coordination on SCM

Purpose – The purpose of this paper is to investigate which firm‐level antecedent – resource‐based capability or inter‐organizational coordination – contributes to a firm's supply chain management (SCM) focus. Design/methodology/approach – A conceptual framework of antecedents of SCM focus and several research hypotheses posit that for a thorough understanding of the behavior of an organization in the supply chain, it is necessary to consider two sets of antecedents simultaneously. Hypotheses are tested using confirmatory factor analysis and multiple linear regression on a set of survey data collected in the USA, Europe and New Zealand. Findings – The analysis of survey data validates the major premise that inter‐organizational coordination plays an important role in explaining the SCM focus of a firm. Research results validate the positive relationships between the proposed antecedents and a firm's SCM focus. Research limitations/implications – Although the research design incorporates extensive literature reviews, it does not capture every aspect of complex inter‐organizational coordination. Future efforts should establish a valid, reliable instrument to measure the underlying constructs. Practical implications – This study shows that a firm possesses inimitable internal resource‐based capabilities and external coordination mechanisms that are unique to each firm. Each of the resource‐based capabilities helps to integrate the various internal functional areas within an organization to increase efficiency and reduce waste. The external coordination mechanisms help a firm to link its processes seamlessly with upstream and downstream supply chain members. The paper also shows that product innovation is the only resourced‐based capability that predicts SCM focus when inter‐organizational coordination mechanisms are considered. Originality/value – The paper contributes to the extant literature by integrating the traditional resource‐based view of a firm with inter‐organizational coordination to examine crucial factors that precede a firm's SCM focus. Both perspectives have considerable merit, so for a thorough understanding of a firm's SCM focus, it is necessary to consider these factors simultaneously.