Linking sourcing and collaborative strategies to financial performance

The role of operational innovation

Adegoke Oke, Andrew Kach

Research output: Contribution to journalArticle

19 Citations (Scopus)

Abstract

In this study we investigate the influence of subcontracting-in production related jobs, outsourcing and collaborations with non-supply chain partners on small manufacturing firms' operational innovation. Further, we investigate the mechanism through which these sourcing and collaborative strategies influence small firm performance by focusing on the potential mediating role of operational innovation in the relationships. The structural equation modeling analysis of data collected from 476 small manufacturing firms, suggests that outsourcing, subcontracting-in, and collaborations with non-supply chain partners are positively related to operational innovation. Further, the structural equation modeling results indicate that operational innovation fully mediates the influence that subcontracting-in has on financial performance but partially mediates the influence of outsourcing and collaborations with non-supply chain partners on small firm financial performance. Implications for theory and practice are discussed.

Original languageEnglish (US)
Pages (from-to)46-59
Number of pages14
JournalJournal of Purchasing and Supply Management
Volume18
Issue number1
DOIs
StatePublished - Mar 2012

Fingerprint

Financial performance
Sourcing
Innovation
Outsourcing
Subcontracting
Manufacturing firms
Small firms
Structural equation modeling
Firm performance
Influence strategies

ASJC Scopus subject areas

  • Marketing
  • Strategy and Management

Cite this

Linking sourcing and collaborative strategies to financial performance : The role of operational innovation. / Oke, Adegoke; Kach, Andrew.

In: Journal of Purchasing and Supply Management, Vol. 18, No. 1, 03.2012, p. 46-59.

Research output: Contribution to journalArticle

@article{113e2ead49854853b98fbd3c7f8ef05e,
title = "Linking sourcing and collaborative strategies to financial performance: The role of operational innovation",
abstract = "In this study we investigate the influence of subcontracting-in production related jobs, outsourcing and collaborations with non-supply chain partners on small manufacturing firms' operational innovation. Further, we investigate the mechanism through which these sourcing and collaborative strategies influence small firm performance by focusing on the potential mediating role of operational innovation in the relationships. The structural equation modeling analysis of data collected from 476 small manufacturing firms, suggests that outsourcing, subcontracting-in, and collaborations with non-supply chain partners are positively related to operational innovation. Further, the structural equation modeling results indicate that operational innovation fully mediates the influence that subcontracting-in has on financial performance but partially mediates the influence of outsourcing and collaborations with non-supply chain partners on small firm financial performance. Implications for theory and practice are discussed.",
author = "Adegoke Oke and Andrew Kach",
year = "2012",
month = "3",
doi = "10.1016/j.pursup.2012.01.001",
language = "English (US)",
volume = "18",
pages = "46--59",
journal = "Journal of Purchasing and Supply Management",
issn = "1478-4092",
publisher = "Elsevier Limited",
number = "1",

}

TY - JOUR

T1 - Linking sourcing and collaborative strategies to financial performance

T2 - The role of operational innovation

AU - Oke, Adegoke

AU - Kach, Andrew

PY - 2012/3

Y1 - 2012/3

N2 - In this study we investigate the influence of subcontracting-in production related jobs, outsourcing and collaborations with non-supply chain partners on small manufacturing firms' operational innovation. Further, we investigate the mechanism through which these sourcing and collaborative strategies influence small firm performance by focusing on the potential mediating role of operational innovation in the relationships. The structural equation modeling analysis of data collected from 476 small manufacturing firms, suggests that outsourcing, subcontracting-in, and collaborations with non-supply chain partners are positively related to operational innovation. Further, the structural equation modeling results indicate that operational innovation fully mediates the influence that subcontracting-in has on financial performance but partially mediates the influence of outsourcing and collaborations with non-supply chain partners on small firm financial performance. Implications for theory and practice are discussed.

AB - In this study we investigate the influence of subcontracting-in production related jobs, outsourcing and collaborations with non-supply chain partners on small manufacturing firms' operational innovation. Further, we investigate the mechanism through which these sourcing and collaborative strategies influence small firm performance by focusing on the potential mediating role of operational innovation in the relationships. The structural equation modeling analysis of data collected from 476 small manufacturing firms, suggests that outsourcing, subcontracting-in, and collaborations with non-supply chain partners are positively related to operational innovation. Further, the structural equation modeling results indicate that operational innovation fully mediates the influence that subcontracting-in has on financial performance but partially mediates the influence of outsourcing and collaborations with non-supply chain partners on small firm financial performance. Implications for theory and practice are discussed.

UR - http://www.scopus.com/inward/record.url?scp=84859434824&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84859434824&partnerID=8YFLogxK

U2 - 10.1016/j.pursup.2012.01.001

DO - 10.1016/j.pursup.2012.01.001

M3 - Article

VL - 18

SP - 46

EP - 59

JO - Journal of Purchasing and Supply Management

JF - Journal of Purchasing and Supply Management

SN - 1478-4092

IS - 1

ER -