Reexamining the Impacts of Supplier Integration on Operational Performance: A Relational View

Prior research has underscored the important role of supplier integration in improving firms’ performance. However, the process of supplier integration is not easy and the effects of supplier integration are complicated since the relationship between supplier and buyer is full of uncertainty. Using the lens of relational view, we theoretically posit two strategies of integrating suppliers, including information sharing and joint decision making, which can cope with the relationship uncertainties. Then we propose that information sharing and joint decision making are positively associated with time-based and functional-based performance separately. Furthermore, we develop hypotheses as to when the above positive relationship will be reduced by utilizing product complexity and competitive intensity as moderating factors. We test the hypotheses using a global survey dataset including 763 manufacturing firms in 22 countries. Results indicate the positive relationship between supplier integration and operation...