How Taiwanese contract manufacturers initiate supply chain integration: the effects of bricolage, improvisation and environmental uncertainty

Abstract

PurposeThis study aims to investigate how bricolage and improvisation increase the opportunities for supply chain integration of contract manufacturers. Connecting bricolage/improvisation with resource dependence theory offers an appropriate theoretical lens with which to understand the increasing focus on the view that bricolage and improvisation are feasible ways to create desired resources for contract manufacturers. Such resources can then enhance the autonomy of contract manufacturers in supply chain by building contract manufacturer–supply chain partner relationship interdependencies.Design/methodology/approachGiven that the primary focus of the study was whether and how contract manufacturers respond to resource constraints, namely, bricolage and improvisation and environmental uncertainty as a moderating effect of fastener contract manufacturers' supplier/buyer integration, only firms that had contractual agreements involving manufacturing services for original equipment manufacturer and/or original design manufacture data were included in this population. This study selected a population from a list of 674 fastener firms provided by the Taiwan Industrial Fastener Institute in 2020 using a mailed survey to test the hypotheses. By the beginning of 2022, 165 completed questionnaires were returned, and the total useable sample was 158.FindingsHypotheses are tested using 158 contract manufacturers of the Taiwanese fastener industry. Results show that bricolage can lead contract manufacturers to initiate supplier and buyer integration. The moderating effect of environmental uncertainty further strengthens the above positive relationships. Without the moderating effect of the environmental uncertainty, improvisation leads contract manufacturers to initiate only supplier but not buyer integration. However, when the moderating effect of environmental uncertainty is included, improvisation leads contract manufacturers to initiate only buyer integration.Originality/valueThis finding highlights the importance of the environmental uncertainty when contract manufacturers adopt bricolage/improvisation to initiate supply chain integration.