The Applicability of an Integrated Supply-Chain: An Empirical Research on Large Organizations in Amman

Suleiman K. Obaidat, Osama J. Kan’an

Abstract


The ideal Integrated Supply Chain (ISC) is an integration of inter-organization and intra-organization processes and operations in a strategic and physical level with all network members to achieve the requested performance and to increase the value of the organization.
This study aimed to investigate the extent of applicability of ISC in the Jordanian market as a competitive advantage in the new global market. To achieve this objective, the study focuses on the dimensions of organization flexibility as an integration enabler, namely; Sourcing, Production, logistics and Product Development Flexibility as well as Information Technology (IT) Flexibility which is used as a support factor for all of the flexibility dimensions.
To study the relationship between the applicability of ISC and flexibility dimensions as well as the differences in implementing these dimensions related to independent variables, a questionnaire was designed and distributed to the largest industrial, services and retailers organizations in Amman, Jordan. The survey included 52 companies inside Amman with a capital equal to or greater than 10 million Jordanian dinar, where 42 of them participated in the study analysis.
The findings of the study prove the applicability of ISC and there is a relationship between applicability of ISC and organization flexibility determinants; which is consistent with previous studies. Also, there is a difference between companies applicability of ISC related to IT flexibility. The strongest driver was logistics flexibility. On the other hand, the study proves that there is no relationship between production flexibility and applicability of ISC in the Jordanian market, which is inconsistent with the previous findings. The study findings indicate that the higher organization flexibility, the higher the applicability of ISC and the better the organization performance.
It is recommended that an organization should work through partner relationships which is achieved by long- term agreements after implementing a robust evaluation system, and it is also recommended that organizations should adopt a policy of acquiring multipurpose resources for both sides of workforce: machines and humans.

Keywords


Applicability, Integrated Supply-Chain, Flexibility and Information Technology

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