Supplier integration and firm performance: the moderating effects of internal integration and trust

Min Zhang, Fiona Lettice, Hing Kai Chan, Hieu Thanh Nguyen

Research output: Journal PublicationArticlepeer-review

66 Citations (Scopus)

Abstract

This study proposes and empirically tests a model of the moderating effects of internal integration and trust on the impacts of information, process and strategic integration with suppliers on firm performance using structural equation modelling and data collected from 261 manufacturing firms in Vietnam. The results show that all three types of supplier integration positively associate with firm performance. Internal integration enhances the impact of process integration with suppliers on firm performance, but does not moderate the impacts of information and strategic integration with suppliers. Internal trust has insignificant, positive and negative influences on the effects of information, process and strategic integration with suppliers on firm performance. The findings show that internal integration and trust play different roles in moderating the positive effects of information, process and strategic integration with suppliers on firm performance, which elucidates a possible reason for previous mixed findings on the relationship between supplier integration and firm performance.

Original languageEnglish
Pages (from-to)802-813
Number of pages12
JournalProduction Planning and Control
Volume29
Issue number10
DOIs
Publication statusPublished - 27 Jul 2018

Keywords

  • Supplier integration
  • firm performance
  • internal integration
  • internal trust

ASJC Scopus subject areas

  • Computer Science Applications
  • Strategy and Management
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering

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