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Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration

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  • Prajogo, Daniel
  • Olhager, Jan
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    Abstract

    Supply chain integration is widely considered by both practitioners and researchers a vital contributor to supply chain performance. The two key flows in such relationships are material and information. Previous studies have addressed information integration and material (logistics) integration in separate studies. In this paper, we investigate the integrations of both information and material flows between supply chain partners and their effect on operational performance. Specifically, we examine the role of long-term supplier relationship as the driver of the integration. Using data from 232 Australian firms, we find that logistics integration has a significant effect on operations performance. Information technology capabilities and information sharing both have significant effects on logistics integration. Furthermore, long-term supplier relationships have both direct and indirect significant effects on performance; the indirect effect via the effect on information integration and logistics integration.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 135 (2012)
    Issue (Month): 1 ()
    Pages: 514-522

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    Handle: RePEc:eee:proeco:v:135:y:2012:i:1:p:514-522

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    Web page: http://www.elsevier.com/locate/ijpe

    Related research

    Keywords: Supply chain integration; Logistics integration; Information integration; Performance;

    References

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    1. Olhager, Jan & Prajogo, Daniel I., 2012. "The impact of manufacturing and supply chain improvement initiatives: A survey comparing make-to-order and make-to-stock firms," Omega, Elsevier, vol. 40(2), pages 159-165, April.
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    Citations

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    Cited by:
    1. Ueki, Yasushi, 2013. "Supply chain collaboration and responsiveness : a comparison between Thai automotive and electronics industries," IDE Discussion Papers 416, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    2. Wu, Ing-Long & Chuang, Cheng-Hung & Hsu, Chien-Hua, 2014. "Information sharing and collaborative behaviors in enabling supply chain performance: A social exchange perspective," International Journal of Production Economics, Elsevier, vol. 148(C), pages 122-132.
    3. Droge, Cornelia & Vickery, Shawnee K. & Jacobs, Mark A., 2012. "Does supply chain integration mediate the relationships between product/process strategy and service performance? An empirical study," International Journal of Production Economics, Elsevier, vol. 137(2), pages 250-262.
    4. Barnes, Jane & Liao, Ying, 2012. "The effect of individual, network, and collaborative competencies on the supply chain management system," International Journal of Production Economics, Elsevier, vol. 140(2), pages 888-899.
    5. Revilla, Elena & Villena, Verónica H., 2012. "Knowledge integration taxonomy in buyer–supplier relationships: Trade-offs between efficiency and innovation," International Journal of Production Economics, Elsevier, vol. 140(2), pages 854-864.
    6. Ueki, Yasushi, 2013. "Formation of supply chain collaboration and firm performance in the Thai automotive and electronics industries," IDE Discussion Papers 415, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    7. Jayaram, Jayanth & Xu, Kefeng, 2013. "The relative influence of external versus internal integration on plant performance in China," International Journal of Production Economics, Elsevier, vol. 146(1), pages 59-69.

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