The Impact of Organizational Process Integration and Logistics Lean on Business Performance

Document Type : Original Article

Authors

1 Assistant Professor Semnan University.

2 M.A., Allameh Tabatabaei University.

3 Ph.D student, Allameh Tabatabaei University.

Abstract

The main purpose of this paper is to investigate the impact of integration of organizational processes and logistics on business performance in automotive industry. In this survey study, we first identify the set of dimensions of integration of organizational processes in an appropriate organizational planning system. Then different aspects of logistics lean are identified and after identifying different dimensions in two issues of process integration and logistic lean, we examine the impact of these dimensions on business performance. Identification of different dimensions is done based on confirmatory factor analysis and then with the help of correlation analysis, we will investigate the type of relationship of each dimension determined with business performance in the automotive industry. The results show the impact of three factors of loss reduction, suppliers and supply chain integration on both internal and external dimensions of organizational process integration. The information system is also influenced by the external integration dimension, which can be concluded that logistic leanings increase the integration of organizational processes. Also, both the integration of organizational processes and the logistics leanings enhance the business performance of the enterprise.

Keywords


1. Appiah,A. K.(1999), "The impact of economic reform on business performance: a study of foreign and domestic firms in Ghana", International Business Review, Vol.8 No.4, pp. 463-486.
2. Baudi, M. (2004), Lean logistic: the nuts and bolts of delivering materials and goods, Productivity press book, a division of Kraus Productivity organization.
3. Bowersox, D.J., Closs, D.J., (1996), Logistics Management, NY: McGraw-Hill.
4. Braganza,A. (2002), ”Enterprise integration: creating competitive capabilities”, Integrated Manufacturing Systems, Vo. 13 No. 8, pp. 562-572.
5. Byrom, R. (2004), “ERP Implementation Fundamentals”, available at : http://www.richardbyrom.com
6. Callen, J.L. and Fader, C., and Krinsky, I.(2000), "Just in time: a cross sectional plant analysis", International Journal of Production Economics, No.63, pp.277–301.
7. Chen, I. J. (2001), “Planning for ERP systems: analysis and future trend “. Business Process Management Journal, Vo. 7 No 5, pp. 374-386.
8. Chou, D. C. and Tripuramallu, H. B. and Chou, A. Y. (2005), “BI and ERP integration”, Information Management & Computer Security, Vo. 13 No 5, pp. 340-349.
9. Crawford, K.M. and Blackstone, J. H. and Cox, J. F. (1988)," A study of JIT implementation and operating problems", International Journal of production research. Vol. 26 No.9, pp.1561-1568.
10. Danes, S.M. and Stafford, K. and Loy, J.T. (2007), "Family business performance: The effects of gender and management", Journal of Business Research, Vol.60 No.10, pp. 1058-1069.
11. DeNoble, A. F. and Olsen, M. D. (1986), "The foodservice industry environment: Market Volatility analysis", Hospitality Review,Vol. 4 No.2, pp.89-100.
12. Fathian, M. and Akhavan, P. and Hoorali, M. (2008), "E-readiness assessment of non-profit ICT SMEs in a developing country: The case of Iran". Technovation, No. 28, pp.578–590.
13. Flynn, B.B. and Sakakibara, S. and Schroeder, R.G. (1995), "Relationship between JIT and TQM: practices and performance", Academy of Management Journal. No. 38, pp.1325–60.
14. Garvin, D. (1993), "Manufacturing strategic planning", California management Review. Vol.35 No.4, pp.85-106.
15. Germain, R. and Toge, C. (1998). "The context organizational design and performance of JIT versus non JIT buying Grms". International Journal of Purchasing and Materials Management, Vol.34 No.2, pp.12–8.
16. Germain, R. and Toge, C. and Spears, N. (1996),"The implications of just in time for logistics organization management and performance", Journal of Business Logistics, Vol.17 No.2, pp.19–34.
17. Goldsby, T., Martichenko, R. (2005), LEAN SIX SIGMA LOGISTICS, J. Ross Publishing, Inc.
18. Golhar D. Y., Stammc. L. (1991), "the just-in-time philosophy: a literature review", International journal of production research, Vol.29 No.4, pp. 57-676.
19. Hanafizadeh, M. R., Hanafizadeh, P., Saghaei, A. (2009), "The pros and cons of digital divide and e-readiness assessments", International Journal of E-Adoption, Vol.1 No.3, pp.1-29.
20. HandGeld, R.B.(1992), "A resource dependent model of just in time purchasing", Journal of Operations Management, Vol.11 No.3, pp.289–311.
21. Hayes, J., Finnegan, P. (2005), “Assessing the potential of e-business models: towards a framework for assisting decision-makers”, European Journal of Operational Research, Vol. 160 No. 2, pp. 365–379.
22. Hirano, H.(2009), JIT Implementation Manual The Complete Guide to Just-in-Time Manufacturing, Second Edition. Waste and the 5S’s Taylor & Francis Group, LLC.
23. Huson, M., Nanda, D. (1995), "The impact of just in time manufacturing on form performance in the US", Journal of Operations Management; No, 12, pp.297–310.
24. Im, J.H., Lee, S.M. (1989), "Implementation of just in time systems in US manufacturing forms", International Journal of Operations and Production Management, Vol.9 No.1, pp.5–14.
25. Inman, R.A. (1990), "Quality certification for suppliers by JIT manufacturing Grms", Production and Inventory Management Journal, Vol.31 No.2, pp.58–61.
26. Juran, J.M. (1998). Juran quality handbook, Fifth Edition, Mc Graw Hill.
27. Kaiser, H. F. (1958), "The varimax criterion for analytic rotation in factor analysis". Psychometrika, Vol.23 No.3, pp.187–200.
28. Kannan, V.R., Choon, K. (2005)," Just in time", total quality management and supply chain management: understanding their linkages and impact on business performance. Omega, Vol.33 No.2, pp. 153-162.
29. Kline, P. (1994), An Easy Guide to Factor Analysis, Routledge.
30. Lawrence, J.J., Hottenstein, M.P. (1995), "The relationship between JIT manufacturing and performance in Mexican plants aBliated with US companies", Journal of Operations Management,13. pp.3–18.
31. Lee, S.M., Ebrahimpour, M. (1984)." Just-In-Time Production System: Some Requirements for Implementation", International Journal of Operations & Production Management, Vol4 No.4, pp.3-15