Entended enterprises logistical best practices and its impact in firm performance

Abstract

Economy and manufacturing globalization, environmental awareness and stress over business and organizational structures, are factors that are generating considerable amounts of pressure that are having impact on enterprises policies and strategies in order to adapt and react accordingly to these pressures. These pressures are forcing firms integration into the Extended Enterprise model, an inter-enterprise network with highly developed agility and flexibility characteristics, with a strong sense of integration and with a responsible environmental awareness. This research statistically (Factor Analysis, Multiple Linear Regression, and T-Tests) examines the relationship between logistical practices typical of the extended enterprise and company performance in Mexico. The results provide empirical evidence that selected customer relations practices and supplier relations practices are strongly associated with the perceived financial and operational success of the Mexican firms responding the survey.