Journal of the Korean Society of Clothing and Textiles (한국의류학회지)

The Korean Society of Clothing and Textiles (한국의류학회)
권호 표지
DOI QR코드

DOI QR Code

The Role of Market Orientation and Organizational Innovativeness in Enhancing the Supply Chain Agility of Korean Apparel Firms

  • Yoon, Taeyoung (Dept. of Clothing & Textiles, Yonsei University) ;
  • Koh, Ae-Ran (Dept. of Clothing & Textiles, Yonsei University) ;
  • Jin, Byoungho (Dept. of Consumer, Apparel and Retail Studies, The University of North Carolina at Greensboro (UNCG))
  • Received : 2014.06.10
  • Accepted : 2014.08.14
  • Published : 2014.10.31
Download PDF
⟨ Previous Next ⟩

Abstract

This study investigates the effects of two organizational variables (market orientation and organizational innovativeness) and the interaction between these two variables on supply chain agility as well as examines the moderating effect of 1) firm size and 2) the extent of global sourcing. Employing a web-based e-mail survey method, the study issued 1,320 questionnaires to South Korea apparel manufacturing companies; data from 147 completed surveys were analyzed. Market orientation, organizational innovativeness, and the interaction between the two variables positively affect supply chain agility. Firm size and global sourcing do not have any significant moderating effects on the relationship between organizational characteristics and supply chain agility. Companies with high market orientation and high organizational innovativeness have more agile supply chains than companies with only market orientation or organizational innovativeness. Firms need to effectively enhance market orientation and organizational innovativeness simultaneously to enhance supply chain agility. The lack of a moderating effect from firm size suggests that all companies should promote a greater degree of market orientation and organizational innovativeness to enhance supply chain agility regardless of firm size.

Keywords

References

  1. Abdul-Talib, A. N., Salleh, M. F. M. D., Shamsuddin, F. M., & Ashari, H. (2011). The effects of firm size and international business experience on export attitudes. Advances in Competitiveness Research, 19(1/2), 4-14.
  2. Adler, P. S., & Shenhar, A. (1990). Adapting your technological base: The organizational challenge. Slone Management Review, 32(1), 25-37.
  3. Aiken, L., & West, S. (1991). Multiple Regression. Newbury Park, CA: SAGE.
  4. Akman, G., & Yilmaz, C. (2008). Innovative capability, innovation strategy and market orientation: An empirical analysis in Turkish software industry. International Journal of Innovation Management, 12(1), 69-111. https://doi.org/10.1142/S1363919608001923
  5. Baker, W. E., & Sinkula, J. M. (1999). Learning orientation, market orientation and innovation: Integrating and extending models of organizational performance. Journal of Market Focused Management, 4, 295-308. https://doi.org/10.1023/A:1009830402395
  6. Baron, R. M., & Kenny, D. A. (1986). The moderatormediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173-1182. https://doi.org/10.1037/0022-3514.51.6.1173
  7. Braunscheidel, M. J., & Suresh, N. C. (2009). The organizational antecedents of a firm's supply chain agility for risk mitigation and response. Journal of Operations Management, 27(2), 119-140. https://doi.org/10.1016/j.jom.2008.09.006
  8. Calantone, R. J., Cavusgil, S. T., & Zhao, Y. (2002). Learning orientation, firm innovation, and firm performance. Industrial Marketing Management, 31(6), 515-524. https://doi.org/10.1016/S0019-8501(01)00203-6
  9. Christopher, M. (2000). The agile supply chain: Competing in volatile markets. Industrial Marketing Management, 29(1), 37-44. https://doi.org/10.1016/S0019-8501(99)00110-8
  10. Christopher, M., & Towill, D. R. (2002). Developing market specific supply chain strategies. International Journal of Logistics Management, 13(1), 1-14.
  11. Cooper, M. C., Lambert, D. M., & Pagh, J. D. (1997). Supply chain management: More than a new name for logistics. The International Journal of Logistics Management, 8(1), 1-14.
  12. Das, A., & Handfield, R. B. (1997). Just-in-time and logistics in global sourcing: an empirical study. International Journal of Physical Distribution & Logistics Management, 27(3/4), 244-259. https://doi.org/10.1108/09600039710170601
  13. Das, B. J., Chappell, W. F., & Shugahart, W. F. (1993). Demand fluctuations and firm heterogeneity. The Journal of Industrial Economics, 41(1), 51-60. https://doi.org/10.2307/2950617
  14. Deshpande, R., & Farley, J. U. (2004). Organizational culture, market orientation, innovativeness, and firm performance: An international research odyssey. International Journal of Research in Marketing, 21(1), 3-22. https://doi.org/10.1016/j.ijresmar.2003.04.002
  15. Fiegenbaum, A., & Karnani, A. (1991). Output flexibility-A competitive advantage for small firms. Strategic Management Journal, 12, 101-114. https://doi.org/10.1002/smj.4250120203
  16. Green, K. W. Jr., McGaughey, R., & Casey, K. M. (2006). Does supply chain management strategy mediate the association between market orientation and organizational performance? Supply Chain Management: An International Journal, 11(5), 407-414. https://doi.org/10.1108/13598540610682426
  17. Hair, J. F., Anderson, R. E., Tathan, R. L., & Black, W. C. (1998). Multivariate data analysis ( 5th ed.). Upper Saddle River, NJ: Prentice-Hall.
  18. Han, I. S. (2003). Improving the estimation of moderating effect in management researches. CNU Journal of Management & Economics, 25(2), 137-153.
  19. Han, J. K., Kim, N., & Srivastsva, R. (1998). Market orientation and organizational performance: Is innovation a missing link? Journal of Marketing, 62(4), 30-45. https://doi.org/10.2307/1252285
  20. Handfield, R. M. (1994). US global sourcing: pattern of development. International Journal of Operation & Production Management, 14(6), 40-51. https://doi.org/10.1108/01443579410062077
  21. Hausman, A. (2005). Innovativeness among small business: Theory and propositions for future research. Industrial Marketing Management, 34(8), 773-782. https://doi.org/10.1016/j.indmarman.2004.12.009
  22. Hult, G. T. M., Hurley, R. F., & Knight, G. A. (2004). Innovativeness: Its antecedents and impact on business performance. Industrial Marketing Management, 33(5), 429-438. https://doi.org/10.1016/j.indmarman.2003.08.015
  23. Hurley, R. F., & Hult, G. T. M. (1998). Innovation, market orientation, and organizational learning: An integration and empirical examination. Journal of Marketing, 62(3), 42-54. https://doi.org/10.2307/1251742
  24. Interview - the president of Dior Korea. (2011, August 8). YONHAP News. p. 7.
  25. Ismail, A. I., Rose, R. C., Abdullah, H., & Uli, J. (2010). The relationship between organizational competitive advantage and performance moderated by the age and size of firms. Asian Academy of Management Journal, 15(20), 157-173.
  26. Jin, B. (2006). Performance implications of information technology implementation in an apparel supply chain. Supply Chain Management: An International Journal, 11(4), 309-316. https://doi.org/10.1108/13598540610671752
  27. Jin, B., Chang, H. J., Matthews, D., & Gupta, M. (2011). Fast fashion business model: What, why and how? In T.-M. Choi (Ed.), Fashion supply chain management: Industry and business analysis (pp. 193-211). Hershey, PA: IGI Global.
  28. Khan, K. A., & Pillania, R. K. (2008). Strategic sourcing for supply chain agility and firm's performance. Management Decision, 46(10), 1508-1530. https://doi.org/10.1108/00251740810920010
  29. Kohli, A. K., & Jaworski, B. J. (1990). Market orientation: The construct, research propositions, and managerial implications. Journal of Marketing, 54(2), 1-18.
  30. Levy, D. L. (1995). International sourcing and supply chain stability. Journal of International Business Studies, 26(2), 343-360. https://doi.org/10.1057/palgrave.jibs.8490177
  31. Lin, Y., Wang, Y., & Yu, C. (2010). Investigating the drivers of the innovation in channel integration and supply chain performance: A strategy orientated perspective. International Journal of Production Economics, 127(2), 320-332. https://doi.org/10.1016/j.ijpe.2009.08.009
  32. Lin, Y. Y. (2006). An examination of the relationships between organizational learning culture, structure, organizational innovativeness and effectiveness: Evidence from Taiwanese organizations. Unpublished doctoral dissertation, University of Minnesota, Winona.
  33. Lukas, B. A., & Ferrell, O. C. (2000). The effect of market orientation on product innovation. Journal of the Academy of Marketing Science, 28(2), 239-247. https://doi.org/10.1177/0092070300282005
  34. Markides, C. C., & Berg, N. (1988). Manufacturing offshore is bad business. Harvard Business Review, 66(5), 113-120.
  35. Martin, J. H., & Grbac, B. (2003). Using supply chain management to leverage a firm's market orientation. Industrial Marketing Management, 32(1), 25-38. https://doi.org/10.1016/S0019-8501(01)00192-4
  36. Min, S., Mentzer, J. T., & Ladd, R. T. (2007). A market orientation in supply chain management. Journal of the Academy of Marketing Science, 35, 507-522. https://doi.org/10.1007/s11747-007-0020-x
  37. Narasimhan, R., Swink, M., & Kim, S. W. (2006). Disentangling leanness and agility: An empirical investigation. Journal of Operation Management, 24(5), 440-457. https://doi.org/10.1016/j.jom.2005.11.011
  38. Narver, J. C., & Slater, S. (1990). The effect of a market orientation on business profitability. Journal of Marketing, 54(4), 20-35. https://doi.org/10.2307/1251757
  39. Nooteboom, B. (1994). Innovation and diffusion in small firms: Theory and evidence. Small Business Economics, 6(5), 327-347. https://doi.org/10.1007/BF01065137
  40. Panayides, P. M., & Lun, Y. H. V. (2009). The impact of trust on innovativeness and supply chain performance. International Journal of Production Economics, 122(1), 35-46. https://doi.org/10.1016/j.ijpe.2008.12.025
  41. Rimiene, K. (2011). Supply chain agility concept evolution (1990-2010). Economic and Management, 16, 892-899.
  42. Ruggero, G., & Matteo K. (2011). Moderating the impact of global sourcing on inventories through supply chain management. International Journal of Production Economics, 133(1), 86-94. https://doi.org/10.1016/j.ijpe.2010.06.011
  43. Rutner, S. M., Gibson, B. J., & Williams, S. R. (2003). The impacts of the integrated logistics systems on electronic commerce and enterprise resource planning systems. Transportation Research Part E, 39, 83-93. https://doi.org/10.1016/S1366-5545(02)00042-X
  44. Sivadas, E., & Dwyer, F. R. (2000). An examination of organizational factors influencing new product success in internal and alliance-based processes. Journal of Marketing , 64(1), 31-49. https://doi.org/10.1509/jmkg.64.1.31.17985
  45. Suh, T. W., Yi, H. C., & Houston, M. B. (2011). Reassessing firm size in international marketing research. Journal of Global Marketing, 24(1), 85-99. https://doi.org/10.1080/08911762.2011.545723
  46. Swafford, P. M., Ghosh, S., & Murthy, N. (2006). The antecedents of supply chain agility of a firm: Scale development and model testing. Journal of Operation Management, 24(2), 170-188. https://doi.org/10.1016/j.jom.2005.05.002
  47. The positioning of Korean market. (2005, March 21). Financial News Magazine. p. 21.
  48. Turkan, D. K. (2005). An empirical investigation of the link between market orientation and new product performance: The mediating effects of organizational capabilities. Unpublished doctoral dissertation, Old Dominion University, Norfolk.
  49. van Hoek, R. I., Harrison, A., & Christopher, M. (2001). Measuring agile capabilities in the supply chain. International Journal of Operations and Production Management, 21(1-2), 126-148. https://doi.org/10.1108/01443570110358495
  50. World Economic Forum. (2012). The global competitiveness report 2012-2013. WEF. Retrieved September 6, 2012, from http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2012-13.pdf