IDEAS home Printed from
   My bibliography  Save this article

An investigation on the direct and indirect effect of supply chain integration on firm performance


  • Kim, Soo Wook


The purpose of this research is to examine the causal linkages among supply chain management (SCM) practice, competition capability, the level of supply chain (SC) integration, and firm performance. This is helpful in developing a framework for linking a firm's SC integration strategy to its competitive strategy, and in identifying how such linkage can be connected to the improvement of organizational performance. Such effort should enable us to derive a set of advisable utilization strategies of supply chain practices for SC integration. From the results of LISREL analysis on Korean and Japanese manufacturing firms and subsequent equality test for multi-group, this paper finds that, in case of Korean firms, efficient supply chain integration may play more critical role for sustainable SCM competitiveness, while, in Japanese firms, the close interrelationship between the level of SCM practices and competition capability may have more significant effect on SCM competitiveness. This finding derives a strategic framework that, in early stage, the emphasis on systemic supply chain integration may be more crucial, and, in the stage after setting supply chain integration on its way somewhat, the movement of strategy focus into the pursuit of high level of consistency between SCM strategy and competitive strategy may be advisable.

Suggested Citation

  • Kim, Soo Wook, 2009. "An investigation on the direct and indirect effect of supply chain integration on firm performance," International Journal of Production Economics, Elsevier, vol. 119(2), pages 328-346, June.
  • Handle: RePEc:eee:proeco:v:119:y:2009:i:2:p:328-346

    Download full text from publisher

    File URL:
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    1. van der Vaart, Taco & van Donk, Dirk Pieter, 2008. "A critical review of survey-based research in supply chain integration," International Journal of Production Economics, Elsevier, vol. 111(1), pages 42-55, January.
    2. de la Fuente, M. Victoria & Ros, Lorenzo & Cardos, Manuel, 2008. "Integrating Forward and Reverse Supply Chains: Application to a metal-mechanic company," International Journal of Production Economics, Elsevier, vol. 111(2), pages 782-792, February.
    3. Chetty, Sylvie K. & Wilson, Heather I. M., 2003. "Collaborating with competitors to acquire resources," International Business Review, Elsevier, vol. 12(1), pages 61-81, February.
    4. Welker, Gera A. & van der Vaart, Taco & Pieter van Donk, Dirk, 2008. "The influence of business conditions on supply chain information-sharing mechanisms: A study among supply chain links of SMEs," International Journal of Production Economics, Elsevier, vol. 113(2), pages 706-720, June.
    5. Wong, Chee Yew & Boon-itt, Sakun, 2008. "The influence of institutional norms and environmental uncertainty on supply chain integration in the Thai automotive industry," International Journal of Production Economics, Elsevier, vol. 115(2), pages 400-410, October.
    6. Larry J. Menor & Aleda V. Roth & Charlotte H. Mason, 2001. "Agility in Retail Banking: A Numerical Taxonomy of Strategic Service Groups," Manufacturing & Service Operations Management, INFORMS, vol. 3(4), pages 273-292, February.
    7. Nurmilaakso, Juha-Miikka, 2008. "Adoption of e-business functions and migration from EDI-based to XML-based e-business frameworks in supply chain integration," International Journal of Production Economics, Elsevier, vol. 113(2), pages 721-733, June.
    8. Jeffrey G. Miller & Aleda V. Roth, 1994. "A Taxonomy of Manufacturing Strategies," Management Science, INFORMS, vol. 40(3), pages 285-304, March.
    9. B Kogut & U Zander, 2003. "A memoir and reflection: knowledge and an evolutionary theory of the multinational firm 10 years later," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(6), pages 505-515, November.
    10. Vachon, Stephan & Klassen, Robert D., 2008. "Environmental management and manufacturing performance: The role of collaboration in the supply chain," International Journal of Production Economics, Elsevier, vol. 111(2), pages 299-315, February.
    11. Swafford, Patricia M. & Ghosh, Soumen & Murthy, Nagesh, 2008. "Achieving supply chain agility through IT integration and flexibility," International Journal of Production Economics, Elsevier, vol. 116(2), pages 288-297, December.
    12. Naresh K. Malhotra & Sung S. Kim & Ashutosh Patil, 2006. "Common Method Variance in IS Research: A Comparison of Alternative Approaches and a Reanalysis of Past Research," Management Science, INFORMS, vol. 52(12), pages 1865-1883, December.
    Full references (including those not matched with items on IDEAS)


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:119:y:2009:i:2:p:328-346. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.