Supplier Relational Integration Under Conditions of Product Complexity

Abstract

While supplier integration is said to have a positive impact on performance, anecdotal evidence suggests that integration is difficult and is seen more commonly at an operational level rather than at a strategic or relational level. Studies have questioned the benefits of integration under certain conditions. This study examines the impact of supplier relational integration (SRI) on supply chain and firm performance; and proposes greater benefits from supplier relational integration under conditions of product complexity (PC). Findings from a survey of 270 manufacturing firms indicate a strong positive impact of SRI on performance. However, the moderating effect of PC is not supported, indicating the possible role of supply base complexity. Implications for theory and practice are discussed