To integrate or not to integrate: factors affecting the adoption of virtual integration strategy in organizations

Purpose – The purpose of this article is to examine the major determinants for adopting virtual integration strategy in organizations. The article also addresses the competitive implications of adopting virtual integration strategy.Design/methodology/approach – The article proposes a theoretical model that shows the major internal as well as external factors for adopting virtual integration strategy. In addition, the article presents real‐world applications of this strategy to explain the adoption process.Findings – Virtual integration is a viable strategy in industries characterized by rapid product innovations and a high degree of competition. Virtual integration enables information technology driven supply chain coordination.Research limitations/implications – Future research efforts in this area should focus on testing empirically the proposed relationships between adopting a virtual integration strategy and firm performance using different industry categories.Practical implications – Executives in a ...