Effects of supply chain integration and market orientation on firm performance

Abstract

Purpose The present paper aims to investigate the impact of two different dimensions of supply chain integration on two aspects of firm performance in the emerging economy of China. In addition, the moderating effects of market orientation on the relationship between supply chain integration and firm performance are explored. Design/methodology/approach Data were obtained from a survey administered to 246 firms in the manufacturing and services industry in China. Hierarchical regression analysis was used to test the hypotheses. Findings Operational coordination is positively associated with operational performance and business performance. Information sharing affects only operational performance; it has no impact on business performance. Furthermore, the results provide empirical support for the moderating effects of market orientation on the association of supply chain integration and firm performance. Originality/value The current paper contributes knowledge on the value‐realizing mechanism of supply chain integration from a resource‐based view. It presents a multidimensional explanation of the relationship among supply chain integration, market orientation, and firm performance in the context of China.