8. Infraestructura de respaldo
8.2. Organización
Product demand volatility, product life cycle, product innovativeness and product modularity explain 72% of variance in supply chain coordination complexity. Supply chain coordination was captured through the level of information sharing, independence on logistics decisions, degree of communication and extent of information technology usage. Table 8.1 below summarises the impacts of product demand and design characteristics on supply chain coordination complexity.
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Table 8.1: Standardised Effects of Impacts on Supply Chain Coordination Complexity
Supply Chain Coordination Complexity Direct S.E. p value Product Demand Volatility 0.235 0.030
Product Life Cycle -0.267 0.005 Product Variety 0.029 0.546 Product Innovativeness 0.268 0.001 Product Modularity 0.254 0.006
Product demand volatility has a significant effect on supply chain coordination complexity.
The results show that product demand volatility is one of the key drivers of supply chain coordination complexity. Standardised effect of product demand volatility on supply chain coordination complexity is 0.235. Hypothesis tested in the SEM - H1: Product demand
volatility positively impacts on supply chain coordination complexity – is, therefore,
supported. This finding implies that companies, which are manufacturing products with highly volatile demand, must coordinate better with their suppliers. Companies with products having more volatile demand share very high levels of information with their suppliers and have a high degree of communication between multiple tiers and channels. These companies often prove to be very reliant on their key suppliers in making logistics decisions. Thus, higher demand volatility leads to higher coordination complexity. Previous studies, such as Lee (2002) and Xiao and Qi (2008) concur with this finding and emphasise on the necessity for aligning supply chain with demand volatility. Information sharing and good communication between multiple tiers and channels constitute a key strategy for avoiding disruption in supply chains due to demand volatility. Lee (2002) emphasises supply chain coordination alignment through information sharing and aligned incentives. Xiao and Qi (2008) also maintain that supply chain coordination is disturbed by demand disruptions. Hence, demand signals via better information flow and improved demand forecasts can improve supply chain coordination.
Product life cycle has a significant negative impact on supply chain coordination complexity.
In other words, products with a shorter life cycle require a higher supply chain coordination complexity. The standardised effect of product life cycle on supply chain coordination complexity is -0.267. This hypothesis––H5: Product life cycle negatively impacts on supply
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study by Wang et al. (2004), which reports that supply chain decisions are often driven by product life cycle. Liu et al. (2006) accord with this finding and state that shorter product life cycle can increase the supply chain coordination complexity. Short product life cycles require more efficient coordination across the supply chain to reduce risks and uncertainty. Olhager (2010) also highlighted the critical role of product life cycle in supply chain management decisions, which is further supported in this research. Jüttner et al. (2007) argue that the product life cycle is not merely a market orientation classification of products. It is also a critical factor helping to align and link the supply chain with customer demand (Jüttner et al., 2007). Hence, the supply chains of products with a shorter life cycle tend to require higher levels of information sharing that in turn create higher coordination complexity.
Product variety has an insignificant relationship with supply chain coordination complexity.
It is anticipated that higher product variety requires higher information sharing across the supply chain and further increases the interdependence between supply chain partners. High variety of product also requires a more efficient inventory management system requiring the use of more advanced information technology. This leads to the fourth hypothesis - H4:
Product variety positively impacts on supply chain coordination complexity, but it is not
supported. This undermines the argument that there is a greater need for supply chain coordination when demand for product variety is high. This finding contradicts the argument presented by Arshinder et al. (2008), who suggest the necessity for higher supply chain coordination when there is high product variety. However, this finding sits comfortably with the results of Pero et al. (2010), who reported an insignificant relationship between product variety and supply chain coordination complexity. Also having only two questionnaire items to measure product variety could have been not adequate enough to fully capture this construct and has led to the above non-supporting result.
Product innovativeness has a significant impact on supply chain coordination complexity,
which confirms hypothesis 7 - H7: Product innovativeness positively impacts on supply chain
coordination complexity. The standardised effect of product innovativeness on supply chain
coordination is 0.268. This indicates that companies manufacturing innovative products often require higher information sharing, greater inter-firm dependence and closer contact with multiple tiers and channels. This result confirms the finding of Pero et al. (2010), suggesting that supply chains of innovative products require greater coordination between suppliers that in turn creates higher coordination complexity. This is also evidenced in the work of Caridi et
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al. (2010) who argue that more innovative products impact on supply chain structure, causing constant supply chain re-engineering and resulting in more supply chain complexly. This finding suggests that supply chain coordination complexity should be adjusted according to the level of product innovation.
Product modularity is another aspect of product design having a significant impact on supply
chain coordination complexity. Findings indicate that higher product modularity is the source of higher supply chain coordination complexity. The standardised effect of product modularity on supply chain coordination is 0.254. This further supports previous studies highlighting the role of product modularity on supply chain coordination. Therefore, hypothesis - H11: Product modularity positively impacts on supply chain coordination
complexity - is supported. This reiterates that highly modular products require a greater
coordination complexity and therefore require more information sharing and a higher level of communication with key suppliers. Chiu and Okudan (2014) also considered modularisation as a critical factor for product design and supply chain decisions due to its effect on assembly sequence and thus selection of components and suppliers. Product modularity as a direct consequence of outsourcing can cause lack of direct control and increase interdependence, thus creating risk and uncertainty in supply chains. A greater level of coordination is required.
Product structure complexity is the third product design characteristic, which was initially
hypothesised to be a potential factor impacting on the supply chain coordination complexity. This resulted in hypothesis 10 - H10: Product structure complexity positively impacts on
supply chain coordination complexity. As the product structure becomes more complex, it
increases the number of suppliers and is consequently a source of higher level of coordination complexity (Cooper, Lamber, & Pagh, 1997). Helo and Szekely (2005) note that complex product structures contain more components, which means that greater coordination in the supply chain is needed. According to Hobday (1998), design characteristics of complex products and systems determine the types of organisational structure and supply chain coordination. A higher degree of product complexity increases information uncertainty. However, the discriminant validity test indicated high correlation between product modularity and structure complexity. In order to maintain discriminant validity, the product structure complexity construct was removed from the analysis.
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To conclude, product demand volatility, product life cycle, product modularity and product innovativeness are identified as key drivers of supply chain coordination complexity with product innovativeness having the highest positive direct effect on supply chain coordination complexity.