The impact of supply chain integration on company performance: an organizational capability perspective

Abstract

Purpose This paper aims to simultaneously examine the impact of three types of supply chain integration (SCI) on three types of company performance from the perspective of organizational capability. Design/methodology/approach Using data collected from 617 companies in China and the structural equation modelling method, the research investigates the relationships among internal integration, customer integration, supplier integration, supplier‐oriented performance, customer‐oriented performance, and financial performance from the perspective of organizational capability. Findings The results show that internal integration improves external integration and that internal and external integration directly and indirectly enhance company performance. In addition, full or partial mediating effects among SCI and company performance are identified, and therefore explain the inconsistent findings in previous studies regarding the impacts of SCI on performance. Originality/value This study contributes to SCI, organizational capability theory literature, and SCI practices.