Supply chain interactions and time-related performances - An operations management perspective

Many studies claim that when an organization interacts with suppliers and w ith customers across the supply chain, the organization would achieve impro ved time performances. This claim, however, has undergone limited theoretic al development, as well as subsequent systematic empirical testing As a res ult, we still have incomplete understanding of the "why" (i.e. the rational e and the "how" (i.e. the mechanisms by which) of such interaction's impact on time performances. This study addresses these issues through both model development and empirical analyses of 164 plants. Our analyses suggest two findings. First, when an organization interacts with suppliers and with cu stomers on quality management issues, the organization would improve its ti me performances indirectly as a result of complete mediation by internal pr actices for: quality management; low management; inter-unit coordination an d vertical coordination. On the other hand, when an organization interacts with suppliers and with customers on materials flow management issues, the impact on time-related performances can either be completely or partially m ediated by internal practices.