Concepedia

SUPPLY CHAIN PROCESS INTEGRATION: A THEORETICAL FRAMEWORK

Haozhe Chen, Patricia J. Daugherty, Timothy D. Landry

Journal of Business Logistics · 2009 · 310 citations · 95 references

TL;DR

Supply chain integration involves realigning firms' operating structures and should be understood from an internal‑external perspective and a process view. The study was undertaken to further understanding of supply chain process integration. A theoretical framework was developed by combining the Strategy‑Structure‑Performance framework, the resource‑based view, transaction cost economics, and social network analysis with industry inputs. The authors argue that a firm's strategic priorities drive supply chain process integration and that developing necessary capabilities through integration leads to superior performance.

Abstract

The current study was undertaken to further understanding of supply chain process integration. It is suggested that supply chain integration, the practice of realigning firms' operating structures, should be understood from an internal‐external perspective and a process view. Drawing upon four theories—Strategy‐Structure‐Performance framework, the resource based view of the firm, transaction cost economics, and social network analysis—and combining industry inputs, a theoretical framework of supply chain process integration is developed. It is argued that a firm's strategic priorities are key factors of supply chain process integration. Superior performance is likely to be achieved when necessary supply chain capabilities are developed through supply chain process integration.