The role of supply chain integration in the transformation of food manufacturers: a case study from China

Abstract

Food manufacturers are increasingly desirous of enhancing their competitive advantage by transforming themselves from being product providers to becoming product-service solution providers. Understanding the impact mechanism of supply chain integration (SCI) on food manufacturers’ transformation performance is crucial to achieve servitization transformation. This study develops a theoretical understanding of how food manufacturers in the hotpot industry facilitate transformation using SCI. It offers a conceptual definition of transformation performance, which involves financial performance, market space, and value creation. Based on case studies, a theoretical framework is proposed to explain the key internal and external drivers of SCI and the impact mechanism of SCI on transformation performance. The framework suggests that SCI contributes to transformation performance through five channels: standardisation, operational risk, product modularisation, knowledge sharing, and added value. It also offers preliminary insights on how transformation performance can offer feedback on SCI at different enterprise life cycle stages.